| What is your investment strategy?
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| On the equity side, the focus is on companies that produce return on capital well in excess of their cost of capital and as a consequence, have the potential to exhibit good growth over the long term.
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| On the debt side, the investments are in high quality AAA bonds and government securities which provide the overall portfolio a degree of stability.
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| Given the downturn in equity markets, is your allocation to equities likely to come down?
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| We believe that the economic and corporate fundamentals continue to be strong, which means that equities as an asset class have the potential to deliver over the medium to long term. Keeping that in mind, we are not looking to reduce our equity exposure significantly over the near term.
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| What is your outlook on equity and debt markets going forward?
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| Prospects of higher commodities prices resulting in a slow down of the global economy might prompt US Fed to pause after a couple of more rate hikes. In such an event, we do not expect RBI to continue increasing rates after a possible hike in October or December.
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| Given the overtly optimistic view taken by our equity investors, we will have to wait and see if earnings growth matches the heightened expectations.
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| Markets have witnessed downward pressure during this month, due to weakness in the global markets. In such a situation, given the volatility and risk involved, stock picking becomes essential. |
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