Indian growth story will be reflected in stocks in the long term: Sundaram Mutual Fund CEO
While investors across the globe are getting rattled by the intense volatility, some of the Indian fund houses are delivering good returns in certain schemes.
Take us through what Sundaram is offering on the new fund…
Basically, we have got approval from SEBI for a value fund. Value stocks are those which are currently quoting at what the long-term valuation should be and hence if you buy them and hold them, there is a good chance of an upside. Given the current fluctuation in the market, where international oil prices are collapsing, commodities are on a downtrend, US interest rates are getting hiked and China is not reporting good numbers, it is the time for India to be the fastest growing nation in the world. But stocks are getting impacted due to global news and liquidity flows.
This is not a sustainable phenomenon. Over the long run, the Indian growth should reflect in Indian stocks with better earnings and better P/E ratios. So, this is a good time to pick up good quality stocks, which are linked to the Indian economy and can deliver multi-bagger returns over a five-year period. So that is why we have launched this fund and we are getting good response from retail investors seeking to lock in their funds.
