The Securities and Exchange Board of India (SEBI) on Friday announced some reforms in the mutual funds industry. The regulator categorised mutual funds into five schemes — equity, debt, hybrid, solution oriented, and other schemes.
Manish Gunwani, CIO - Equity Investments at Reliance Mutual Fund believes the move which aims to clearly distinguish schemes in terms of asset allocation, investment strategy, etc. will prove to be great one for investors.
The reforms will make it easier for investors to evaluate options before investing.
“Broadly, for the industry, it is a great thing that a lot of confusion goes out,” Manish Gunwani, CIO-Equity Investments, Reliance Mutual Fund told CNBC-TV18 in an interview.
Fund houses will be allowed to have one scheme in each category, except for index funds/ETFs tracking indices, fund of funds and thematic schemes investing in different sectors.
For the market, international cues such as return of global growth, upgrades in metals and refining, among others seem to be working. While on the domestic front, he added that the market could be looking at the fact that growth is lower due to demonetisation and GST-related issues.
In terms of earnings, Gunwani sees FY19 to have comprehensive global and domestic growth. “Telecom, pharmaceuticals are seeing earnings at bottom. There could be year on year growth in those industries as well,” he added.So, what sectors could be good bets? Gunwani is positive on corporate banks, capital goods, logistics and pharmaceuticals. Having said that, he sees risks to the market in terms of dollar movement due to geopolitical concerns or Fed movements. Back home, there are not much risks seen unless there is some political uncertainty taking place.