Remain optimistic on Indian equities in long run: Atul Kumar - The New Indian Express

Remain optimistic on Indian equities in long run: Atul Kumar

Published: 18th December 2013 01:18 PM

Last Updated: 28th February 2014 12:17 PM

''Stay focused to your investments and keep a long-term view,'' says Atul Kumar, senior fund manager equity at Quantum AMC.

In an interview with Varsha Inamdar of Myiris.com, Atul Kumar said, ''We remain optimistic about Indian equities in the long run. We remain hopeful of India continuing to record GDP growth of 6% in the long term, though there will be bumps for next 1-2 years.''

Excerpt from interview Myiris had with Atul Kumar:

1. At current market levels, what are your views on the equity markets?

We see current equity valuations as reasonable. Going by historical average of BSE 30, the current valuations are closer to long term average. It is neither very cheap, nor very expensive.

2. According to you, which sectors will likely to outperform or underperform in near term?

We are sector agnostic and makes investment decision based on bottom up research. We look at stocks in 3 broad themes-domestic consumption, exports and infrastructure. while domestic exports and exports companies have done well, stocks related to infra/capex cycle have underperformed.

3. What is your market outlook for CY14?

We remain optimistic about Indian equities in the long run. We remain hopeful of India continuing to record GDP growth of 6% in the long term, though there will be bumps for next 1-2 years. However, structural reforms are necessary to achieve the potential growth.

4. What is the growth that you are expecting in assets of equity funds in near future?

Domestic investors are sentiment driven, they usually come to market when it has already run up. Mis-selling, may have further put investors on the sideline. Very difficult to tell when they will be back.

5. What is your advice to investors at this point in time?

Stay focused to your investments and keep a long-term view. Investors should not fall prey to market fluctuations. The biggest mistake investors make is to halt investments in equities when stock markets are falling and withdraw whatever corpus has been created as soon as stock markets seem to have recovered. To tackle this tendency one needs to link investments to goals and not to stock market levels. While it is very important to balance out your portfolio and spread your investments across asset classes, one can look at Debt and gold as an asset class to park their investments.

Therefore, if you have future financial goals like planning for retirement, childâ™s education, their marriage etc., you can have some exposure to equities and have a long term horizon while investing and not exiting from your investments abruptly to book quick profits in the stock market. Moreover, you should consult your financial advisor to guide with your investment needs.

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