Equity is likely to outperform other asset classes in about six months with improved earning expectations, building confidence in the corporate sector and increased risk appetite among investors playing the catalyst, say experts.
“Improved earning expectation, government’s emphasis on reforms and the liquidity situation has boosted confidence of the corporate sector,” said A Balasubramaniam, chief investment officer of Birla Sun Life Asset Management Company.
As markets take the cue six months ahead, in next six months markets will react with some green shoots and would appreciate.
Dinesh Thakkar, chairman and managing director of Angel Broking does not believe that bonds would be a good asset class.
“Despite high fiscal deficit govt would not let it go beyond a certain level. If economic growth does not live up to expectations, bonds would fall. If it does, yet equities would be more lucrative than bonds,” he said.
“Investors cannot afford to ignore equity as asset class, and should invest as per their risk appetite,” Deena Mehta, managing director of Asit C Mehta, a leading brokerage firm said.