MF Talk: Sunil Subramaniam advises retail investors to enter markets with over 10 year time horizon

“Belief in the India growth story remains intact and hence ‘buy low sell high’ is entering their thought process especially in those who have been investing for 10 years plus,” says Sunil Subramaniam, MD, Sundaram Mutual.

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In an interview with ETMarkets, Subramaniam said: “Liquid segment is largely an Institutional play and do not see any reallocation by retail investors into this category,” Edited excerpts:

Fixed Income space fell more than 70%, but strong inflows were seen in liquid funds. What is the trend that you are seeing in the fixed income space given the fact that equity markets are trading near record highs? Do you see some churn?
No. Liquid segment is largely an Institutional play and do not see any reallocation by retail investors into this category.

In terms of NFOs there were many index funds, as well as thematic funds, were launched. What is fueling the trend?
Large institutional flows into large cap implies that it is harder to deliver alpha by active fund managers – but they are a critical part of an investor’s asset allocation decision.