Moneycontrol
Sep 05, 2017 02:09 PM IST | Source: CNBC-TV18

FY19 to be good for earnings growth; flows may keep market supported: ICICI Pru AMC

Nimesh Shah of ICICI Prudential AMC says when you are managing money in fiduciary capacity it is important to have a balanced approach while investing in market.

Nimesh Shah of ICICI Prudential AMC says when you are managing money in fiduciary capacity it is important to have a balanced approach while investing in market. With inflows systematically coming into the market one cannot afford to remain out of the market – so one must participate but be conservative while participating, he adds.

Systematic Investment Plan (SIP) at current juncture is around Rs 5000 crore plus and growing at Rs 200-300 crore every month, says Shah.

According to him, there does not seem to be any headwinds for the Indian macros – so till elections in May 2019, there is time for earnings to catch up and even if they do not catch up, the flows are strong. FY19 is expected to be good for earnings, he adds.

It is very heartening to know that people are moving towards financial savings and within that with bank interest rates going below 7 percent, there are more people wanting to put money into market related instruments. Debt related funds are seeing good traction, he adds.

Shah says there is ample potential for the mutual fund market to growth because the deposit market stands at Rs 100 lakh crore, while MFs are only Rs 20 lakh crore today. Money is systematically coming into the MF market, he adds.

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