Nearly 60% of fund managers bullish on equities, says survey
According to the latest fund manager survey by ICICI Securities, the overall outlook has improved significantly over the last three months, with nearly 60% of the fund managers expecting the market to be up between 15% and 20% after one year. In the previous survey (August 2012), only 8% of the respondents were found to be bullish on Indian equities.
The I-Sec survey, which covers 12 domestic fund managers from the mutual fund industry and is conducted on a quarterly basis, found 25% of respondents expecting market returns in the range of 10-15%, while 17% of the respondents expected the market to deliver returns in 0-10% range.
Fund managers had divergent views on market valuations, with 50% of the fund managers saying the equity markets are under- or fairly valued. However, the current I-Sec survey found higher number of fund managers expressing undervaluation in the markets compared with the previous survey.
“The investment confidence has improved significantly after the government focus on major reforms to improve growth prospects,” said Pankaj Pandey, head, Research, ICICI Securities. Fund managers were more hopeful of better earnings growth for the next year (FY14) compared to FY13. A total 75% of respondents expected earnings growth to be in the range of 10-15% in FY14
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