''The Indian share market has gained about 100%
from its lows in late 2011. Nevertheless, this rear-view mirror is of little
use, as it was driven predominantly by price-earnings (P/E ratio) re-rating and
earnings made a smaller contribution.
Long-term equity returns in India have averaged
nearly 15% (annually) and matches longer-term earnings growth.
Investors should invest in the share market with
this threshold in mind. Further, given the current valuations & a still
on-the-mend economy, they should keep a time horizon of 5 years or more."
Mr. Vetri Subramaniam, CIO, Religare Invesco MF
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