MUTUAL FUNDS

Corporate earnings cycle remains weak and if they do not show any improvement the markets may correct from current levels <
29-Mar-14   17:53 Hrs IST

Mr. Nilesh Shetty
In an interview with Capital Market, Nilesh Shetty, Associate Fund Manager (Equity), Quantum Mutual Fund said, Investing in Equities should be looked at from a long term perspective and trying to time the market can be fraught with risks.

Excerpts:

1. Where do you see Sensex as we enter the new financial year?

Index Valuation remains slightly above its long term historical band, hence it has room to go up further if FII flows continue remain strong. However corporate earnings cycle remains weak and if they do not show any improvement the markets may correct from current levels.

2. Which sectors you are considering attractive from investment point of view and which sectors you are avoiding?

We have had very little or no allocation to consumer staples and pharma stocks purely due to valuations. We are currently over weight on consumer discretionary (which includes auto, media and hospitality stocks) energy and utilities.

3. India received good inflow from FIIs in 2013. Do you think India will continue to receive such inflows?

Given the growth differential between India and other investable markets, in my view India will continue to attract its fair share of FII flows.

4. What would you like to advice to the investors in the current scenario?

Investing in Equities should be looked at from a long term perspective and trying to time the market can be fraught with risks. Systematic allocation over long periods of time can facilitate the investor makes commensurate returns.

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