RBI is constantly balancing these two in a delicate dance of maintaining growth, keeping sufficient liquidity in the system but keeping interest rates reasonable.
Retail investors should consistently keep an eye on asset allocation and not get swayed by heady equity returns of 2020, says Agarrwal.
Eighty percent of large-cap mutual fund managers in India have been unable to beat their index over the last five years. This is because humans are emotional and suffer from biases, panic, and euphoria, no matter how disciplined.
Markets will evolve and there will be new products. While the way we invest might change, human behaviour does not. We are always seeking the 'edge' to maximise our upside.
While volatility will remain in FY22, there are sufficient tailwinds for equities to continue to do well, says Agarrwal.
Agarrwal highlighted that the big shift in the trend is going to happen in the next 10 years as rule-based systems in trading, investments will become more popular.