1. Don’t take on too much equity; as markets are in for a consolidation: Nilesh Shah of Kotak Mutual Fund

Don’t take on too much equity; as markets are in for a consolidation: Nilesh Shah of Kotak Mutual Fund

Amid all the exuberance of Nifty trading less than 100 points since all-time high levels, Nilesh Shah, the Managing Director of Kotak AMC has a word of advice for the investors.

By: | Updated: September 15, 2017 12:38 PM
Private equity, Private equity investments, Private equity investments jump, Grant Thornton Nilesh Shah of Kotak AMC says, “This is time to book profits.” (Graphic by Financial Express)

Amid all the exuberance of Nifty trading less than 100 points since all-time high levels, Nilesh Shah, the Managing Director of Kotak AMC has a word of advice for the investors. The expert says that there could be consolidation in the near term, and advised investors not to get carried away and take on too much equity at this point in time. In a conversation with ET Now he said, “There could be a pause button. If you’re part of that minority Indians who are overweight equity, this is time to book profits. This is not the time to run leveraged positions.”

However, he believes that the long-term prospects remain attractive. He told the channel, “We still believe there is long-term growth potential in equity markets in India.” In view of the above he told the investors that this is not the market for short-term trade. “We hope and believe that investors who are investing are doing so on a longer-term basis,” said the expert.

Earlier this week, Nilesh Shah said that it will be a challenge for the mutual fund industry to handle record inflows to the tune of Rs 27,000 in the equity mutual funds for the month of August. He says that the cash balances with the funds are likely to go up marginally due to the massive inflows. “One comfort factor is that lot of indian investors are now investing via Systematic Investment Plan. There are more than 1.55 crore SIPs running in equity mutual funds, bringing about Rs 5,200 crore last month,” he observed.

A report by Deutsche bank last month underscored how the rising component of Systematic Investment Plans (SIPs)  is changing the profile of Indian savings towards equity investments. “The accelerating momentum of inflows into the equity schemes of mutual funds indicates that the financialisation of the domestic savings cycle in India — which began in earnest in 2014 — is becoming deeply entrenched,” Deutsche Bank said in a research note last month.

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