Finding investment idea for better alpha difficult this year: PNB AMC

Dhimant Shah, Senior Fund Manager, Equities, Principal PNB Asset Management Company is of the view that at current valuations generating a new investment idea for a better alpha is going to be difficult in the coming year and moreso because there are elections coming up in nine states and 2-3 likely interest rate hikes buy US Fed.

According to him, this is the second or third year of global recover and this year again IMF and others have predicted a decent global growth and in light of that largecaps are slightly better placed.

When asked how one should approach the market from here on, he said first would be conjoined to what kind of risk appetite the investor has and depending on that even investing at high levels, could pay off for the investor over a period of 3-5-7 years.

The market could see some more volatility, so prudent to stick to the format the investor is comfortable with, said Shah.