''We expect the first rate cut of 50 basis points from RBI, in June 2015,'' says Nilesh Shetty, associate fund manager, equity, Quantum AMC.

In an interview with Varsha Ladewar of Myiris.com, Nilesh Shetty said, ''Investors who are busy with their daily work and do not have much time and knowledge to take effective decisions in equities can look at investing in equities through mutual fund route.''

Excerpt from interview Myiris had with Nilesh Shetty:

1. How do you see global economic and market outlook?

Global economic outlook still looks uncertain. The Eurozone continues to remain weak. Within emerging markets Indian looks best poised, hence continues to attract strong flows, but with US Fed tapering looming , flows into emerging markets are a huge question mark. Overall, given where valuations are in India, any significant global economic event, will lead to a correction.

2. What is your take on Indian markets? Are you bullish or bearish on Indian equities currently?

The markets have rallied since Aug 2013, expecting a turnaround in corporate earnings assuming strong policy action by the new government. Any disappointment on the earnings front, will lead to a correction. Even if corporate results are in line, significant outperformance from current levels will be limited, given rich valuations. Only if earnings surprise on the upside materially, will markets continue to move higher.

3. Where do you expect the repo rate to stand at March 2015?

We expect the inflation rates to move up to around 7.5- 8 % in the month of March 2015 so accordingly repo rate shall stand. The market will also be looking at US Federal Reserve raising rates in the second half of calendar year. The focus of RBI is CPI Inflation, 49.4 % of Consumer price inflation consists of food items, we expect the RBI to assess the progress of monsoons, to gauge inflationary expectations before cutting rates. We expect the first rate cut of 50 basis points from RBI, in June 2015.

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

Allocation to equities, at less than 1% of total household savings, remains extremely low. The primary reason for this remains, low trust investors have towards equities as a long term savings avenue and instead preferring real estate, bank FD's and Gold. As India matures one can expect allocation to equities to be a lot higher.

5. How can investors choose between different avenues in the equity category?

Investors can invest in equities either directly or through mutual funds.  Those investors who have time and knowledge to take investment decisions like which companies in, when to invest and come out of these companies at what price; they can look at direct equities. Investors who are busy with their daily work and do not have much time and knowledge to take effective decisions in equities can look at investing in equities through mutual fund route.

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

If an investor has Rs 100 to invest, one can look at a lump sum Rs 40 to 50 and rest can be done through SIP over a period of one year or invested in a gradual manner whenever market corrects.