Conditions look favorable for stock markets. Trade deal has been done in America and China. The threat of recession on the American economy seems to be avertizing. Here, the results of the fourth quarter of companies in India have been mixed. The question is, where will you earn a hefty amount on investing 10 lakh rupees today? Moneycontrol interacted with Ihab Dalwai about this. He is a senior fund manager at ICICI Prudential AMC. Along with answering this question, he told many things about stock markets and investment.
Valuations more despite the decline
Dalwai believes that Indian stock markets (Stock markets) In some pockets in some pockets, the prices of shares have declined. Despite this, the valuations is more than the historical average. He explained the other important thing that the camper’s earnings growth (Earnings Growth) It is expected to remain normal. The fourth quarter results of most companies have come. The results are mixed. Further, companies with good quality and balance sheet can be performed better.
End of more earnings growth
He said that concern about global economy has declined. But still the tension on the trade is not over. In such a situation, the rise in the prices of shares will depend not only on the sentiments but on the earnings of the companies. He said that we are entering such a phase, in which earnings growth can be normal. It will not be like earlier high growth bicycles. As far as India is concerned, the proportion of corporate profits and GDP is at historical height.
Also read: Digital Form 16: Now ITR will not have problems in filing, digital form 16 will work in a few minutes
Multi-asset approach required in investment
Where would it be right to invest 10 lakh rupees today? In response, he said that the investor should adopt a multi-asset approach now. This means that investment should be made in many assets instead of an asset. These include equity, date and commodities. In view of the uncertainty in the global market and economy, it would be good to invest in quality focused equity funds. It would be good to invest in shares of companies with different market cap instead of companies of the same market cap.