New Delhi, Aug. 9 -- Equity markets have remained largely range-bound for around two years, testing investor patience and prompting questions around fund performance, valuations and the outlook for different parts of the market.

In a note to unitholders, Rajeev Thakkar, CIO and director at PPFAS Mutual Fund, addressed some of the concerns surrounding equity markets and the performance of its schemes. He discussed the current market phase, cash levels in the Parag Parikh Flexi Cap Fund, artificial intelligence, private-sector banks, small- and mid-caps and popular investment themes.

Thakkar said the current period of sideways equity markets is neither unusual in duration nor in the magnitude of the decline from previous peaks. He pointed...