Even as the economy sees consumption slowdown, investors could still get good returns if invest from a long-term perspective, said a veteran fund manager.
Even as the economy sees consumption slowdown, investors could still get good returns if invest from a long-term perspective, said a veteran fund manager. The best investment strategy for investors currently is to invest through systematic investment plans (SIPs), S Naren, executive director and chief investment officer of ICICI Prudential AMC told CNBC TV18 in an interview. “From being cautious, I think it’s come to a situation where you keep investing and an investor today, who doesn’t look at the market for the next five years, there is a good chance of making money because you are investing when everything looks bad,” S Naren said.
Further sharing his stock market strategy, S Naren said that he remains cautious on the stocks whose trailing PEs are high even after correction, even as he has moved away from cautious to constructive on equities. He also said that the large caps and indices are heavily favoured on side of stocks which are overvalued. There is a need of a massive export thrust and short-term fiscal push from the government to boost the economy amid the slowdown, he added.
On mutual funds, S Naren said that the biggest challenging factor is that people are not investing especially in debt mutual funds as much as is expected. In the last six months, the investment has come into smallcap rather than debt.
On the other hand, S Krishna Kumar of Sundaram MF said that the economy is not in a deep slowdown and will bottom out in the next few months. The slowdown is more visible in automobiles and housing-related stocks, he noted. The investors are advised to buy stocks with visible growth and global management, he added. On NBFCs, he said that the top rated NBFCs would do well in the current scenario.
Meanwhile, Sensex ended 161.83 points higher at 36,724.74, while Nifty was up 46.75 points at 10,844.65 in the intraday trade.