MUTUAL FUNDS

We remain positive on the equity markets over the next 2-3 years and expect returns of 15%-20% p.a. over this period<
22-May-14   19:21 Hrs IST

Mr. PVK Mohan
In an interview with Capital Market, P.V.K Mohan, Head - Equity, Principal Mutual Fund said, We recommend investors to increase exposure to equities with a 2-3 year view.

Excerpts:

1. Where do you see the equity markets heading as they touch new heights?

We remain positive on the equity markets over the next 2-3 years and expect returns of 15%-20% p.a. over this period.

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

We are positive on the domestic-oriented sectors such as financials, auto, industrials, cement, infrastructure and expect these to outperform the market

3. What are your expectations from the upcoming policy review?

We expect policy rates to remain on hold till CPI eases meaningfully

4. What are your Union Budget 2014-15 expectations?

Rather than only the Union Budget expectations, the market expectations from the new Government would be a transparent policy framework, expeditious clearances, initiatives to accelerate economic growth, implementation of GST and DTC, development of infrastructure and ensuring timely and effective implementation of projects. It is also expected that the new Government would look at ways to tackle the structurally high inflation.

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

We recommend investors to increase exposure to equities with a 2-3 year view

6. Kindly share your investment strategy with us.

Our strategy has been to stay invested in the market despite all the challenges facing the economy, focus on investing in companies with strong growth prospects and which would benefit from the likely pick-up in economic growth and available at attractive relative valuations and stay invested till the entire up-cycle plays out

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