Dalal Street Voice: Investors likely to get a lot of opportunities to create wealth in SAMVAT 2078: Mohit R… – Zee Business
Mohit Ralhan, Managing Partner & Chief Investment Officer of TIW Private Equity, said that Samvat 2078 is expected to be the year of normalization, and therefore, investors are likely to get a lot of opportunities to create wealth.
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In an interview with Zeebiz’s Kshitij Anand, Ralhan said that the IPO activity is only going to accelerate. India’s start-up ecosystem has matured significantly, and with more than 40 unicorns now, it is the third-largest in the world. Edited Excerpts:
Q) What is the big message which you want to give to your readers on this Diwali 2021 on markets, investing, wealth creation, or in general? What are your expectations from Samvat 2078?
A) Samvat 2078 is expected to be the year of normalization, and therefore, investors should get a lot of opportunities to create wealth.
The biggest expectation is that the COVID eventually becomes endemic, and effective medicine is found, which prevents hospitalization, therefore making it similar to any other viral infection.
This will probably be the most critical trigger for the markets to go up. The economic recovery across the world, including India, is likely to continue and therefore corporate earnings should keep pace.
The central banks will need to tread through the fine balancing act between inflation and growth, and their actions will be watched closely. But overall, Samvat 2078 is likely to be a good year for India.
Q) Which sectors are likely to hog the limelight this Samvat 2078?
A) Inflation plays and industries or companies with high pricing power will be the top priority. Consumer discretionary, energy, logistics, and real estate associated sectors such as building materials are likely to do better.
With the opening of the economy — the travel and hospitality sectors should also offer good opportunities.
Q) It has been crazy SAMVAT 2077 – your big lessons for investors?
A) The biggest lesson is to remain invested and overcome the psychology of fear and panic. During certain periods, volatility can be high and therefore the portfolio allocation between equity and non-equity parts are critical.
The allocation to equity shouldn’t be high that forcing investors to panic and exit at the worst possible time.
Scenario building is also important, and investors must think in advance of their actions if markets take a nosedive from here to the extent of say 20%, or 30%, or even more.
This may or may not happen, but scenario building will prepare investors to not make any irrational decisions. Investors must also spend significant time and effort to understand the interplay of sectors at different stages of …….