Investors should take a constructive view on real estate, NBFC, auto sector: Aegon Life

One should now take a constructive approach in these sectors. Apart from these sectors the infra space is also looking interesting, Saibal Ghosh, Chief Investment Officer, Aegon Life Insurance, said in an interview with Moneycontrol’s Kshitij Anand.

Below are edited excerpts:

A) Directionally, I think we are in a rising market and the tailwind of earnings growth from FY20 onwards should keep the market buoyant.

A) The market has already priced in a strong government to be in power for the next 5 years. I think the primary agenda of the new government will be to kick-start the economy which has been struggling for the last few years now.

Real estate, NBFCs, the auto sector and the entire discretionary consumption space have been suffering. The prices of some of the quality stocks from these sectors have also taken quite a beating.

I think one should now take a constructive approach in these sectors. Apart from these sectors, the infrastructure space is also looking interesting.

A) If one can afford to take a risk and ready to commit his/her funds for the next 5-10 years, then there are good opportunities available in the midcap space.

Notwithstanding the recent challenges, one must note here that the long-term India growth story is still very much intact.

If the Indian economy were to grow at a faster pace than rest of the globe, then midcaps, which represent the domestic economic story more strongly, are expected to outperform its largecap peers in next 5 to 10 years’ time frame.

A) As I said, the midcap space is a good option for investors. However, investors must have patience and the risk appetite to venture in this space.

But, if investors need to be risk averse then high credit quality fixed income funds may be a good option to consider at the current juncture.