Going forward, investors over the year globally will be pushed at market-determined instruments that could include equities, bonds, REIT, etc. in a bit to save their wealth from eroding.
Domestic institutional investors turned net sellers in July and it looks like there is some edginess among investors at higher levels, but equity as an asset class is here to stay, Sonam Udasi, Fund Manager, Tata Mutual Fund said in ‘D-Street Talk’ podcast with Moneycontrol.
“There is a bit of edginess among investors because to see your portfolio go down by 30% in March for anybody was jarring. A lot of new investors who have come in the last 2 years – the returns might have well-turned flat-to-negative,” said Udasi.
“The recent price action is not a good brand ambassadorship for an asset class. But, globally, no govt. has been able to promise good returns. The fixed-rate are down, Long Term Bond Yields are down, and return on saving rate is collapsing. So, the risk-free rate of return globally is coming down,” he said.
Going forward, investors over the year globally will be pushed at market-determined instruments that could include equities, bonds, REIT, etc. in a bit to save their wealth from eroding.
“I would look at the near term selling in equities as a caution, and not a trend over the long term,” added Udasi.
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