New investors may not return if markets fall 5-10 per cent, says Swaminathan
JioBlackRock Asset Management's Sid Swaminathan warned that market volatility could lead to permanent exits among recent investors.
New investors might never return to the markets if they panic and exit during a 5-10 per cent market decline, according to Sid Swaminathan, managing director and chief executive officer of JioBlackRock Asset Management.
Speaking in an interview, Swaminathan noted that while monthly SIP inflows have supported market resilience despite broadly negative returns over the last two years, there are signs of rising investor churn.
He observed that high rates of SIP cancellations and stoppages suggest concerns regarding investor persistence, especially among those who began investing less than two years ago.
The executive suggested that as conditions stabilise, this market resilience could potentially attract foreign investors, as reported by Mint.