To celebrate the Mutual Fund Day that falls on every 7 day of the month, CNBC-TV18 spoke to Anand Radhakrishnan, CIO- Equity, Franklin Templeton Investments. Last month mutual funds saw a record inflows to the tune of Rs 20,000 crore.
Radhakrishnan says although the number looks impressive, still the savings into MFs are lower compared to other assets. However, it is an issue to deploy cash at higher levels – one cannot keep chasing momentum and have to be careful and prudent but at the same time deliver returns. So balancing this is not an easy task.
The house he says is structurally bullish on private banks present in retail side as well as corporate end of the market because they offer much better risk return trade off, if one has medium-to long-term outlook. Although the growth momentum currently is in favour of NBFC, which have benefited from the benign money market conditions by borrowing at competitive rates.