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2022 is ending soon. Can you give us a sneak peek into your 2022?
For the first time in the history of Indian equity markets, the retail investors matched shoulder to shoulder with the FIIs. While the FIIs were on the selling spree, the retail investors continued to have faith in our economy and kept buying. It was due to this that our markets remained pretty much unperturbed by external shocks like Russia- Ukraine war, global central banks hiking rates to fight inflation, high commodity prices and so on.
What trends do you think that the MF industry should watch for in 2023?
The outlook for 2023 remains one of cautiously optimistic. Our markets have withstood a lot of volatility and global events and all those events are playing out. Russia-Ukraine war is not over, US Fed is not over from its war on inflation and oil prices can spike up due to cartelization or due to geopolitical events. Globally growth scenario is looking very gloomy because of fiscal and monetary tightening. For 2023, equity markets are likely to be very volatile. Returns would probably be similar to debt funds and not significantly different like in 2022. But will provide an opportunity to invest in the market from a long-term point of view.
What are the two key lessons that the year has taught you?
This is not the market for trading. This is not the market to take leveraged positions. This is the market for disciplined asset allocation and buy on dip and sell on rise. One should stay away from poorly governed companies.
What are your aspirations for the coming year?
Just like we have Jan Dhan Yojna to push financial savings which led to every Indian having a bank account, I hope we have Jan Nivesh Yojna. This would help channelize savings to support Indian entrepreneurs by developing our capital markets. A lot of money today is invested in real estate and gold. India doesn’t mine even 1 gram of gold. We import gold worth 30-35 billion dollars each year. If the same amount is invested in mutual funds, insurance, bank deposits, etc, it will support Indian entrepreneurs in a big way and impact our economic growth. I hope in the coming year, we move one step closer to achieving this.
What are the new things that you would like to implement in your professional and/or personal life?
Personal: Would want to focus more on my health.
Professional: Simplifying customers’ financial journey by coming up with innovative solutions to the ever-evolving challenges and enabling our customers to adapt seamlessly to new realities.
What trends do you think MFDs/RIAs should watch for in 2023?
Instead of watching out for the events, watch out for your reaction to these events. I really can’t say what will Russia do or what will Ukraine do. I do know that because of an escalation in the Russia- Ukraine situation if there is a correction in the market, it might be an opportunity to add depending upon the extent of the escalation. I don’t know whether Fed will raise rates or cut rates as per expectations. What I do know if Fed is delaying expectations and there is a correction or rise, I know how to capture that in my portfolio. Don’t bother about events instead please focus on how you are reacting to those events.
