“Investors should keep in mind that they have borrowed some future returns”

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Subscribe to enjoy similar stories. Investors should keep in mind that they have essentially borrowed some returns from the future, and that is the reality, said Vetri Subramaniam, chief investment officer at UTI Asset Management Company. Moreover, expecting to achieve returns that exceed earnings growth from the starting point is a risky assumption.

So, the best guess for returns will likely align with earnings growth. However, given that the valuations are currently high, there is a possibility that returns could dip below earnings growth if valuations start to normalize, he said. “So, that’s the mindset I would adopt when looking at the equity markets right now," he said in an interview.

I wouldn't frame the answer that way because there's something more interesting to note. In the past 5 to 7 years, we've seen a significant influx of young investors in the market. For those with 30 years of experience, evolution has been gradual.

What stands out is the behavioural shift: equity investing has become widely accepted as a key part of strategic financial planning for long-term goals. This marks a notable change from 20 or 30 years ago, when many viewed investing as a quick way to get rich. While some of that mindset remains, especially in speculative trading, the data shows an increasing commitment to long-term investing.

Equity investing is now mainstream, no longer just for a few speculators, and that is the real shift. In my view, much of short-term trading—and I’ve done it earlier in my career—is essentially a zero-sum game. You're dealing with daily volatility and market fluctuations.