As a result, we are comfortable allocating to equities when the market is doing well and hold back investments during corrections. A rash decision to redeem or delay long-term investments because of short-term market volatility can significantly reduce investors’ returns. In fact, the coming financial year may see the fastest earnings growth over the past several years. However, the equity market, over the long term, generates returns that are 3-4% higher than the nominal GDP growth. Investors have made good money in the past three years, but earnings growth has lagged behind.

Source: Economic Times April 02, 2018 00:56 UTC