S Naren , chief investment officer, ICICI Prudential Mutual Fund , said valuations are not cheap, but the cycle is attractive. He told Prashant Mahesh that over the next two years, as capacity utilisation goes up, earnings will catch up, and one should invest in dynamic asset allocation funds and large caps.
Post demonetisation, the Nifty has returned 22%. Retail investor sentiment towards equity as an asset class is very positive and they continue to pour in money. Will they continue to get high returns?