Moneycontrol
Nov 07, 2017 12:20 PM IST | Source: CNBC-TV18

Volatility of flows into Mutual Funds on expected lines: Reliance MF

when crude rises the performance of upstream, oil & gas, commodity producers is better than that of OMCs, paint companies etc and vice-versa, said Manish Gunwani, CIO-Equity Investments, Reliance MF.

CNBC TV18 @moneycontrolcom

The seventh of every month is celebrated as Mutual Fund Day and to celebrate new investment ideas and the trends in that industry, CNBC-TV18 spoke to Manish Gunwani, CIO-Equity Investments, Reliance Mutual Fund.

When asked was he worried about the slight decline seen of flows into MFs in the last two months, he said it was a marginal dip and given that the base has moved up so much, one should be prepared for minor volatility.

According to him, the investor sentiment and attitude is still quite robust and does not see any structural issues in terms of domestic flows.With the rise in crude oil prices, the ten-year bonds are trading above 6.93 percent.

Gunwani said crude from macro perspective has a downside in terms of fiscal deficient, current account deficit, inflation etc but all bull markets in India and the emerging markets (EMs) have always been accompanied by rising crude and commodity prices.

Secondly, from macroeconomic perspective, the net effect is not great but there are couple of alleviating factors - rising crude is sign of global growth picking up and if the global economy is growing then we could see healthy rise in exports, which helps the current account deficit.

So although higher crude prices have always been a worry for an importer like India, it is not a single variable play where one can change once stand based on crude, said Gunwani.

Always when the price of crude goes up or down, there is a shift in performance of some sectors – like when crude rises the performance of upstream, oil & gas, commodity producers is better than that of OMCs, paint companies etc and vice-versa.

For the full interview, watch video
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