A BALASUBRAMANIAN, CEO of Birla Sun Life Mutual Fund with assets of close to Rs 1,37,000 crore, says long-term investors are convinced about investing in Indian equity. “There’s nothing to worry about daily market fluctuation. The worry always comes and goes. Overall, the economy will grow and corporate earnings will improve,” he said in an interview to GEORGE MATHEW. Excerpts:
Global markets, including India, are in turmoil. Foreign investors have pulled out over Rs 10,517 crore in January.
When there is uncertainty, you see some outflows which basically come from hedge funds and ETF investors. There won’t be too much outflows from equity. Whatever outflow is happening is in the nature of ETF flows. Long-term investors are convinced on investing in Indian equity. Confidence of investing in India still remains high. Inflows will depend on global factors. The slowdown happened due to the Fed rate hike. As long as there’s global liquidity and rates remain low, I think flows will come. Unlike other emerging markets which saw significant outflows… that may not happen in India.
