Fund managers at mutual fund houses believe equity markets are fairly valued, majority of them are positive on the markets. They expect earnings growth to improve in FY14-15 and equities to outperform other asset classes in 2014, according to ICICIdirect Fund Manager Survey.
Majority of the fund managers believe the uncertainty surrounding the outcome of the general election is a major risk for Indian markets but do not advise maintaining an underweight stance on equities before the event, ICICIdirect said.
Pharma, BFSI, IT and infra/capital goods sectors are the most preferred among fund managers. The sectoral preference has been more diverse compared to earlier surveys indicating diverse views among fund managers. Opinion is also divided over positioning before general election results towards defensives and cyclical sectors.
With expectations of stability in overall capital markets, majority of the fund managers expect midcaps to outperform.
Majority of the fund managers expect RBI to cut rates in the September-December quarter of 2014, it said.
Preference for short-term debt funds has increased due to higher accrual income and lower volatility. Total 90% of the fund managers expect the 10 year benchmark G-sec yield to be range bound between 8.50% and 9%.
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.