Makes sense to remain constructive on equities: Nimesh Shah of ICICI Pru MF

The MD and CEO of the fund house says India remains attractive as firms have deleveraged, credit growth is very low, capex cycle is yet to revive and profit-to-GDP ratio is low too

Intermittent volatility cannot be ruled out but one should remain constructive on equities, says Nimesh Shah, MD and CEO at ICICI Prudential Mutual Fund. In an interview with Chirag Madia, Shah says India remains attractive as corporates have deleveraged, credit growth is very low, capex cycle is yet to revive and profit-to-GDP ratio is low too. Edited excerpts:

Q. How difficult was last fiscal given the crisis in the debt funds and what are the lessons learnt from it?

Compared to 2020, we believe 2017-18 was a much more difficult period when there was a rush for yields without factoring