A Day after HDFC Fund Manager re-iterated the fundamentals of Indian Equities, Sr. Fund Manager from Reliance Mutual Fund, Sunil Singhania has also issued his assessment of the situation.
Mr. Singhania wrote in a communication,
We acknowledge that the headwinds to Indian equities have been significant over the last few months and that the uncertain global macro environment has added to the volatility. However, we assess the fears of massive selloff, reminiscence of 2007-08 global subprime crisis are overdone. On comparison, the variables at around the sell-off of 2008 were different and far more menacing than they are now. While currently, certain section of the market is worried about repeat of 2008, we believe as investors one should avoid panic and rather look at the current adverse environment as an opportunity.
From an investor standpoint, we think notwithstanding the events/risks in the next few months, if one invest in equities now, in the ensuing period one can expect relatively better returns over the following 12- 18 months.
Mr. Singhania is a seasoned Fund Manager and is well known for managing Reliance Growth Fund and Reliance Banking Fund.