Put Your Money on India: Fund Managers

Now that the indian markets are showing some stability, does it make sense to invest in global equity markets like the US or Southeast Asia? Forbes India checks with fund managers.

Indian equities have seen a sharp rebound, aided largely by policy and positive global factors. Measures announced by the new RBI governor have brought stability to the rupee. We believe this makes an investment case for India in the long term. A risk-reward ratio is generally high when the market is trading low. India is slowly coming out of a weak economic cycle; so, given a long-term horizon, an investor should utilise the weakness in the equity market to invest systematically.
Dipak Acharya,
Fund Manager (Equity), Baroda Pioneer AMC

There is a sort of consensus that the emerging market story is over for now. We have a contrarian view: Despite challenges, there is growth potential. About India, there are near-term challenges on macro factors like inflation, twin deficits and interest rates. But India is still witnessing a GDP growth rate of 5 to 5.5 percent, which is not common. It still offers better potential for returns than S&P or Dow. Index companies are likely to grow at 14-15 percent; others at a higher pace.
Daljeet S Kohli,
Head of Research, Indianivesh Securities

This is the time for people to get in instead of move out of equities in the domestic market. Investors should look at specific opportunities that lie within. At the index level, though we are around 20,000, because of the existing bipolarity, certain pockets are available at cheap valuations. That is where you can make significant gains if you hold on for a positive time correction. But diversification is good to minimise risk, hence investors can look abroad too. They should be watchful of a depreciated currency.
Tushar Pradhan,
CIO, HSBC AMC