"We are positive on the inflows into equity MF,'' says PVK Mohan, equities head, Principal PNB Asset Management.
In an interview with Meena Konar of Myiris.com, PVK Mohan 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.''
1. What is your take on Indian markets? Are you bullish or bearish on Indian equities currently?
We continue to remain very positive with a 2 to 3 year view on the back of improving corporate earnings growth driven by an improving economic outlook and various initiatives to drive growth. The soft commodity outlook and benign inflation outlook also augur well for reduction in interest rates which should again help corporate profitability. However given the sharp run up in the market and some global risks emanating from potential rise in US interest rates, we remain cautious in the very near term and would not rule out a phase of consolidation and higher volatility.
2. What is the growth that you are expecting in assets of equity funds in near future?
While it is difficult to put a definitive number to the growth, we are positive on the inflows into equity MF from domestic investors given the potential for reasonably good returns over the next few years.
3. How can investors choose between different avenues in the equity category?
The best way to play the equity market for retail investors would be through Mutual Funds. The choice of the appropriate scheme would be driven by the individual risk profile and investment objectives; a large-cap or diversified equity fund would probably be a good starting point. For investors with a 2 to 3 year view and willing to take slightly higher risk, a mid-cap fund would be suitable. It is however important to ensure portfolio diversification to spread risk.