What is your excuse for not investing?

  •   Wed, Oct 21 2026
  •   By David Pinto Prabhu

October 21, 2025

It’s been sometime since I penned down something on equities. Guess what? Nothing has changed for the past 2 years and hence I’m self-absolved from my hiatus of 6 months. Indian equities are in fact down by 13% in the past 2 years and 7 out 10 stocks from BSE 500 have not even delivered a bank fixed deposit return. And this is when equities were pitched to be delivering inflation beating and not just match a fixed deposit return. In such a scenario one can often begin to wonder if the decision to invest in equity was right. Let me try to decode a few myths on equity for rational thinking.

Today, the most common sentiment shared by disturbed equity investors is. “I wish I had invested in a Bank deposit instead of equities”. Well, I don’t have counter rational thought for such sentiments as equities are not like fixed deposit (FD). A FD comes with an obligation of paying fixed returns at fixed intervals. Nothing less not nothing more as well. Equities do not have such obligations. Equities in some years may witness a lull with no returns and some years might witness remarkable returns. That is the nature of equities. For those of my friends who share the said common sentiment, my request is to revisit the reason of opting for equities. Equity investments if held for the long term deliver higher than fixed instrument returns in a more tax efficient manner. So, if someone believes that equities should give you consistent returns, you need to accept that equities do not come with such obligations.

We also often hear some whispers, I quote: “I wish I had invested in Gold instead of equities.” Well gold is a good investment to beat inflation but not as a diversification asset class. We all know that gold did not deliver returns for 27 yrs between the period of 1980 and 2007. When you hear 27 yrs, 2 years sounds like a waft. Gold and Silver can have rallies in the short run, but in the long term can witness larger drawdowns. A maximum exposure of 15% in Gold is recommended via Gold ETFs or Gold Mutual Funds. So, for those who want to invest in equities, please stick to 15%!

Then there are some of us who feel like redeeming our existing equity investments and are of the belief that they can come back just when the markets tend to pick up. Well, there is no one who can get the exact bottom of the market nor the peak right. Markets tend to fluctuate just like an ECG of a heart patient. They have to be so because volatility signifies normalcy in the markets. It’s in this volatility; money gets transferred from impatient to patient investors and best person to do this is your equity fund manager. They need existing investors to stay invested and fresh inflows to buy when some sells cheap. Today the SIPs of Rs 32,927 Crs per month is the best example for fresh inflows. So, for some who wants to exit today, my suggestion is, do not try to time the market, rather stay invested in the market for a longer period. Remember Rome was not built in a day and similarly wealth creation takes time and all it needs is your patience.

For those who are invested in real estate, please remind yourself on the pains of selling real estate. I for one took three months to identify the right broker and 9 months to sell it. Equities on the other hand takes two days to liquidate. Time to understand the importance of the liquidity aspect of SLR. L stands for the ease of liquidity, S for safety & R for returns.

Equity markets are unpredictable in the short run and more rational in the long run. If you see the above graph, markets have seen dips at multiple instances, yet it has delivered a handsome CAGR of 12%. The best we can do for ourselves is stop anlaysing short term market movements. Stay invested with sound advice. Investing is more about scrapping out things which are not needed rather than what is needed. You don’t have to be present at every party in the town. Pay attention to asset allocation. Use corrections as buying opportunities. Sit with your advisor, explain your goals, understand your risk appetite & horizon, then invest and sit tight. 

 

 
By David Pinto Prabhu
David Pinto Prabhu, Partner at Fisdom Private Wealth, is on a mission to simplify the clutter surrounding the dynamic nature of investments. He has over 20 years of experience in the field of investments. After starting his career with ING Investment Management (2004), he moved to J P Morgan Asset Management (2008), and was heading South India for its institutional business. He holds a PGDM degree from St Joseph’s College of Business Administration, Bengaluru, and a B Com degree from St Aloysius College, Mangaluru, where he is currently based. David can be contacted on LinkedIn: linkedin.com/in/david-pinto-29037a33 and Email: davidcasmir@gmail.com.
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