“Today, the Government of India bond for five years and 10 years is close to about 7-7.5% and corporate bond for five years is about 7.5%. This kind of yield is even adjusted for earnings but is attractive for investors to park their money. Therefore, in the overall asset allocation, equity, ETF and even the bond portfolio should be part of the consideration.”
“In trade generics, Cipla traditionally has been a market leader and I believe that in the next three-four years, trade generics will continue to grow faster than the market and given that they are market leaders with established equity in the system and distribution muscle, I expect Cipla to grow faster.”
The fund, including a green-shoe option worth up to ₹250 crore, will be investing in real estate projects in key property markets including metro cities. The collaboration will bring together established investment managers' individual research, underwriting and asset management capabilities, and extensive track record in both the domestic and international markets.
What helped regular investors to create wealth? Surprisingly most investors said one decision in hindsight played a major role in their efforts to create wealth.
A Balasubramanian started his career as an investment manager thirty years ago. Some of us remember him as the go-to debt fund manager. The debt market was very different. He progressed to become the MD & CEO of Aditya Birla Sun Life Mutual Fund. He still retains his calm demeanor despite a punishing schedule.
“The bond market point of view in fact is that though the bond yields have gone up by 20 bps today, otherwise the market has been building in a significant expectation and that is the way the bond yields have been reflecting on the potential rate hike which RBI would have eventually made.”
“India is still called a developing economy and till such time we become actual part of the developed economy globally, the hope and optimism for India will continue and we cannot look at a one-year market or a 10-year market. I still believe that we are probably in a 10-year bull market in India, given the fact we still have a long way to go.”
Arun Balasubramanian, managing director of India and the SAARC region said, “ServiceNow is committed to managing data locally and meeting India’s data protection and sovereignty standards."
“When it comes to pharma we are not seeing secular growth. While India can be a secular growth story, we believe the US would not be and therefore one can bet on specific names from a long-term perspective – something like a Cipla or a Sun. Cipla because of its complex generic portfolio and Sun because of its specialty generic portfolio. In pharma, one needs to be a bit more picky.”
“Almost $11-$14 billion selloff that has come from FPI investors got absorbed by the domestic investors and that being the case, FIIs will reverse. FIIs are more opportunistic. Whenever they see fundamentals of the economy undergoing a change, they will jump the gun and start putting money. Though the biggest trigger will come from domestic investors, FII flows will be a big surprise for me in the year 2022.”
“One should look at banking sector from an investment angle. One should consider this fall as an opportunity. Stagger investment over a period of next one or two months, Be convinced that this current war probably may not be too long and at the same time, significant price increases can correct as sharply as they have risen once the dust settles down. Finally, one cannot wait for that timing to happen for one to consider investment.”
“From an investor’s point of view, there is no doubt that when there is fear, one buys. But the question is whether it is going to subside immediately and it does not look like it is going to subside immediately. Given the fact that structurally till the supply side constraints are there, commodity prices will remain at an elevated level.”
According to an industry source, last week Sebi inspected the total investment positions of MFs in overseas assets and found that the limit was fully utilised. Subsequently, it asked fund houses to restrict incremental investments abroad, which led to the Amfi directive. The $7-billion limit was set in June 2021 with the individual fund house limit set at $1 billion.
“In terms of the sector, I would say it is back to basics. I would not recommend a pure Covid play at all.“
"Having seen substantial returns from equity in 2020 and 2021 on the back of an unprecedented liquidity led rally, expectations from 2022 need to be normalised in the backdrop of gradual liquidity normalisation."
“Mutual Funds via SIPs have created a huge counterforce to dependence on foreign investors that we used to have earlier.”
“As the wallet share of the customer increases, there is a huge need for somebody to advise them and it cannot be technology. Personal ties would remain a large component.”
“With more players coming in and existing players like us being deeply committed to build the business, the industry can grow in size to the next level.”
“Sensex at 100,000 points cannot be ruled out given that we couldn’t predict that 60,000 on the index will come so fast. Predicting markets is a futile exercise. The power of compounding has been working beautifully for many years and this is simple mathematics -- 12-13 per cent compounding each year.”
Established players with a long term track record will continue to grow on the back of the credibility they have already built.
“More players coming in would only help the existing incumbent players like us who have remained committed for the last 25 years and continued to build this business.”
“Sectors that have gone through a time value correction would start going up. Not on the basis of the earnings but from a pure valuation angle, they may hope to get recognised.”
“Next year, we will probably see a bigger opportunity coming in fixed income space. In our balanced advantage fund, only 40% is in equities now.”