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MC Special Podcast | For double digit growth in your portfolio, time to invest is now at lowest point of GDP

The government is cognizant about the revival of the economy, but is taking some concrete measures to do it which is a positive sign.

October 21, 2019 / 09:40 PM IST

Speaking to Moneycontrol on the sidelines of PMS Bazaar PMS-AIF summit in Mumbai on 18 October, Manish Jain, Portfolio Manager at Ambit Capital said that the time to invest in markets is now when GDP cycle is at the lowest point.

To support the conviction he has on markets, Jain gave reference to the study that Ambit published a while back on investing. If someone invests in a market in the last 20 years at a time when the nominal GDP growth rates were at the lowest point and stayed invested for 3 years – the returns which one could have made would have been 21 percent on a compounded basis.

Now, if we compare this when investors would have invested in the market at the peak of the GDP cycle – the returns are surprisingly low, around 6 percent, explains Jain.

There is inherent belief that the best stocks are picked in worst of times as long as there are no issues with respect to corporate governance, management quality, and the growth outlook from top down perspective continues to be exciting. It is actually the best time to invest in equities.

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Additionally, the government is also cognizant about the revival of the economy but is also taking some concrete measures to do it which is a positive sign.

Tune in to the podcast for more.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Oct 21, 2019 09:40 pm

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