Dalal Street Voice: Global liquidity, lower interest rates will support investment revival: Ankur Maheshwari of Wealth Equirus
Ankur Maheshwari, CEO, Wealth Equirus, said that India's private investment cycle is set to recover after more than a decade due to government schemes, capital expenditure in sectors like cement, metals, and digitisation.
Ankur Maheshwari, CEO, Wealth Equirus, said that India's private investment cycle is set to recover after more than a decade due to government schemes, capital expenditure in sectors like cement, metals, and digitisation.
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Maheshwari has a total work experience of 17 years, a large part of which has been in the Consumer Banking and Wealth Management industry across the Sales, Product and Investment Advisory verticals. Prior to setting up Wealth Equirus, he was working with Citibank for over a decade, where his last assignment was as SVP and National Head - Investments Sales.
In an interview with Zeebiz's Kshitij Anand, Maheshwari said that investment strategy for a long-term investor remains guided by two fundamental pillars, irrespective of market levels – (1) maintaining asset allocation, and (2) selecting fundamentally the right investment stocks/funds and not be swayed by either too much exuberance or excessive pessimism. Edited excerpts:
Q) I am sure everyone would be celebrating this Diwali as most portfolios have turned green, but what are your expectations for Samvat 2078? What should be the investment strategy?
A) Equity, as an asset class, has delivered strong returns over the last 18 months, specifically from March ’20 – when the Covid Phase 1 started.
Keeping that in mind, the valuations for the Indian equity indices are a bit stretched, more so in the mid and small-cap space.
Hence, it won’t be a surprise if we see a pullback, from the current market levels. It is difficult to give views and predict the market movement for a specific short period.
However, the investment strategy for a long-term investor remains guided by two fundamental pillars, irrespective of market levels – (1) maintain your asset allocation, and (2) select fundamentally the right investment stocks/funds and not be swayed by either too much exuberance or excessive pessimism.
Q) FIIs are selling at a time when the Sensex and the Nifty50 hit fresh record highs. What seems to be worrying FIIs? Is it a sign of caution, which retail investors should take note off?
A) FIIs take their independent view of each market basis their overall investment strategy across the globe and keep in mind various factors viz interest rates, central bank behaviour, commodity cycle, allocation in developed markets vis-à-vis emerging markets, etc.
A retail investor should not get swayed by behaviour of FIIs and stick to his/her own investment strategy/plans.
Many times, FIIs behaviour may not be the guiding principle for a retail investor to make decisions, as each has different investment requirements and desired outcomes.
Q) The September quarter earnings remain a mixed bag. What are your views on the FY22 earnings expectations?
A) The earnings growth on sales and volume have been robust. However, it needs to be seen if companies shall be able to maintain their margins, owing to high inflationary pressures.
Q) We have seen a strong rally in the small and midcap space. And now that the tide seems to be taking a cautious stance – do you think high beta stocks could come under pressure?
A) The rally in the mid and small-cap space has been extremely strong, especially over the last 18 months.
The valuations have also become a little stretched and are building in a strong revival and earnings recovery. In case of any earnings disappointment or any external unfavourable macro event, it may lead to some correction.
Q) What should be an asset allocation for investors for SAMVAT 2078?
A) Asset allocation is uniquely defined for each individual basis his/her risk appetite, time horizon and liquidity need. So, there cannot be one common answer for all investors here.
Q) Which sectors are likely to lead the next leg of the rally?
A) We believe that India's private investment cycle is set to recover after more than a decade due to government schemes, capital expenditure in sectors like cement, metals and digitisation.
Accommodative monetary policy, global liquidity and lower interest rates will also support the investment revival.
Q) Do you see another double-digit correction in the rest of the FY22? And, do you think that could have an impact on SIP flows, which crossed the Rs 10,000-crore mark in a month.
A) It is difficult and futile to predict the extent of correction. Intermittent corrections are healthy and part of any equity market cycle. For a long-term investor, any correction should be used as an opportunity to further add to his / her investments.
SIP Flows have continued to grow as an outcome of financialization of savings by the Indian investors. This trend is expected to grow with more and more new investors coming in the market and realising true potential of the long-term systematic and disciplined savings.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
03:52 PM IST