Investment made in 9 out of 10 crises gave double-digit returns: HDFC MF

Historically, investments made in uncertain times have yielded good returns, says a report ‘COVID-19, Lockdown, Oil & More’ by HDFC Mutual Fund. The report says, “ Investment made in 9 out of 10 major crises over the last 20 years, have yielded double digit returns over the next one year.” HDFC Mutual Fund supported the claim by showing ‘next one year’ returns of 10 crises that have happened in the past including, Asian Financial Crisis, Kargil War, Attack on World trade Center in the US, SARS Outbreak, Iraq war, BJP unexpectedly losing election, Global Financial Crisis, European Debt crisis, Taper tantrum and BREXIT announcement. According to the data shown in the HDFC Mutual Fund’s report, 10 year NIFTY returns are at 5% CAGR currently. NIFTY returns below 5% CAGR over a 10-yr period have been followed by good returns over next 3, 5 and 10 years Increase exposure to equities HDFC Mutual Fund believes the time is right to increase exposure to equities with a medim to long term view.