Equities must remain in retirement portfolio despite market swings: Hsu

Investors should retain equities in their retirement portfolios despite market turbulence, according to Judy Hsu, the CEO of Standard Chartered's wealth and retail banking division. Hsu makes her recommendation amid a period of largely stagnant Indian equity indices and a trend of investors favoring South Korean and Taiwanese stocks that capitalize on the AI sector. However, India remains a world leader in aggregate growth and the number of dollar millionaires.

Global bond yield increases have decreased the appeal of emerging market assets, negatively impacting the rupee and other growth assets. Hsu emphasizes that equities consistently outperform cash in the long run. Even with rising interest rates, cash does not outperform due to inflation. As of September 25, the Nifty 50 witnessed a one-year negative return of 6.10% and a three-year annualized return of 5.60%.

Foreign portfolio investors pulled ₹1.78 lakh crore out of Indian equity and debt markets in 2026, the second year of outflows after the same occurred in 2025. Hsu stresses the importance of building a resilient and diversified portfolio given the market uncertainties. Standard Chartered is witnessing a surge in wealth-management client growth, particularly among entrepreneurs expanding or selling their businesses.

The bank's biggest growth in wealth management stems from entrepreneurs, who account for about 70% of Standard Chartered's affluent clients globally and represent the fastest-growing client segment. Standard Chartered holds the third-largest position in Asia's wealth management sector, boasting over $470 billion in affluent assets under management as of June.

The financialisation of household savings has accelerated since the pandemic, with digitization broadening retail participation in equities and other financial products.