57% of investment professionals bet on stocks to get the best returns

More than half of the country’s investment professionals believe equities will offer the best returns to investors compared to other asset classes and have predicted an 11% rise in the benchmark BSE Sensex index by the end of the year. end of 2016-17.

According to the results of a survey by the Indian Association of Investment Professionals (IAIP), almost 57.26% of investment professionals expect “generous gains in stock indices, with BSE Sensex which is expected to climb 11% from the current level of 25,000”.

“…investment professionals in India expect equities to provide the best risk-adjusted total returns for the year ending March 31, 2017 (compared to other asset classes such as as bonds, cash, commodities, precious metals and real estate),” the survey mentioned.

However, the survey indicated that investment professionals were concerned about India’s economic growth prospects over the next 12 months due to the slowdown in the global economy and the risk of deflation, among others.

About 40 percent of respondents believe the country’s real GDP growth rate will be between 7 and 7.5 percent by the end of the current fiscal year.

IAIP Chairman Jayesh Gandhi said investment professionals “expect government initiatives and measures to result in improved corporate profitability and earnings growth that would boost market returns. stock market “.

Sunil Singhania, CIO of Reliance Mutual Fund (Equity Investments), said: “India will reach a $4 trillion economy in the next 7-8 years.”

Noting that the last financial year was difficult due to a weak monsoon, Singhania added that “with political stability, we expect profits to increase”.

“We are doing things right strategically and structurally, especially in infrastructure,” he added.

The IAIP, a member firm of the CFA Institute in India, is an association of local investment professionals made up of portfolio managers, securities analysts, investment advisers and other financial professionals.

The CFA Institute is the global association for investment professionals.

The survey, unveiled here today, was conducted among 635 investment professionals across India.