According to Kalpen Parekh, MD and CEO at DSP Mutual Fund, all equity markets experience periods of zero returns, with leadership constantly changing across different time periods. As reported by Mint, Parekh analyzed performance data from three major equity markets: Nifty 500 TRI (Indian markets), S&P 500 TRI in INR (US markets), and MSCI China in INR (Chinese markets). The Indian market delivered the strongest returns of 13% annualised during the 3 January 2000 to 24 April 2026 period, followed by the US market at 11% and China at 9%.
The data reveals significant shifts in market leadership over different decades. According to Mint reports, in the 2010–2020 decade, the US market clearly dominated with 18.5% returns, almost double that of India (9.9%) and China (9.9%). In the more recent 2020–2026 period, the US again leads with an over 20% return, while India's performance has been modest at 15%, and China significantly underperforms with a return of 5%.
The performance data highlights significant market volatility across all regions. As reported by Mint, from 2000 to April 2026, the Chinese market saw a maximum loss of 72%, while India and the US suffered maximum losses of 57% and 55% respectively. This analysis demonstrates that the period of investment is more important than market timing, emphasizing the importance of long-term investment strategies.
Parekh emphasizes that investors should focus on staying invested, diversified, and allowing compounding to work over time. According to Mint reports, he recommends maintaining a diversified portfolio focusing on quality stocks and implementing regular portfolio rebalancing. His approach suggests buying low and selling high every five years, with the key principle being that "every market will disappoint you for long periods. Your job is not to predict the winner. Your job is to stay invested, stay diversified, and let compounding do the rest."
