The year 2021 will be a year of ‘normalization’ with vaccination, the economy should pick up the pace, corporate earnings will also bounce back strongly, and equity markets which have already discounted the rebound should hold the gains, Prashant Khemka, Founder of White Oak Capital
“Benchmark indices are up 13-14% so far in the year 2020, and for the year 2021, I expect the market to give a low double-digit return in the range of 10-12% return,” added Khemka.
Commenting on global diversification, Khemka is of the view that the desire for investing money outside India has certainly gone up in the last few years. This could due to the fact that returns from the US markets for the last decade has been strong.
“The argument to invest in the US market or the global market does make sense from a diversification perspective,” says Khemka. One has the opportunity now to invest some money outside India makes sense from a portfolio construction perspective.
When asked how much one should put outside India? Khemka is of the view that investors tend to have the biggest portion of their investment corpus in their own country, and the rest single-digit or low double-digit can be outside towards global markets.
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