Edelweiss Mutual Fund CEO Radhika Gupta recently highlighted the difficulty of timing the markets, both for individual investors and fund managers. In a post on social media platform X, Gupta questioned the ability to predict recent market movements. "Could you predict last week's fall? Today's massive rise? A geopolitical outcome? A trade deal?" she wrote.
She pointed out that while some investors try to move in and out of the market based on events, such strategies are often hard to get right. “While there are proponents of taking cash calls, days like this remind you how difficult market timing – both entry, exit and re-entry – for individuals and fund managers are,” she said.
Gupta added that a significant portion of annual returns often comes from just a few key trading days, which are difficult to forecast.
The post comes amid recent market volatility, with sharp swings seen over the past few trading sessions due to geopolitical developments and global economic signals.
Here’s what Radhika Gupta wrote on X
Could you predict last week's fall? Today's massive rise?A geopolitical outcome? A trade deal?While there are proponents of taking cash calls, days like this remind you how difficult market timing - both entry, exit and re-entry - for individuals and fund managers are. A large part of a year's returns come from a few critical days, and those are hard to predict. For us "dumber" investors, staying invested and staying patient is the easier and more effective thing to do!