Feb 17, 2017 03:25 PM IST | Source: Moneycontrol.com

HDFC MF's Jain says macro factors are favourable for investments

HDFC Mutual Fund is quite optimistic on Indian market as macro economic indicators are favorable for making investments, said ace fund manager Prashant Jain, Executive Director & Chief Investment Officer at HDFC Mutual Fund.

HDFC MF's Jain says macro factors are favourable for investments
Himadri Buch
Moneycontrol

HDFC Mutual Fund is quite optimistic on the Indian market as macro economic indicators are favorable for making investments, said ace fund manager Prashant Jain, Executive Director & Chief Investment Officer at HDFC Mutual Fund.

"Indian interest rates are stable, inflation is low, capex is rising and NPAs are peaking out. These factors show that environment is favorable for investments," Jain said.

Jain was speaking at a Cafemutual IFA event here today in Mumbai.

In his view, interest rates will maintain a downward bias but the room for fall is clearly much less.

He further added that stable rates will drive company profits.

According to Jain, corporate earnings are more cyclical. He explains, "Earnings depend on economic conditions, on interest rates, commodity prices and they go through their ups and downs."

Another positive aspect he spoke on is that for the first time ever FDI or foreign direct investments is four times the current account deficit indicating a positive environment for Indian markets.

He summed up his speech by saying that investors will reap benefits if they patiently remain invested in the markets for the next 2-3 years.
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