Will the markets of India perform better than the US? Manesh Dangi’s vision of shares and asset distribution

So what does it all lead? You have always emphasized the importance of the correct allocation of assets. With so many worldwide uncertainties, the domestic markets seem more manageable. Do they have to focus exclusively on domestic assets, the exposure to exports and sectors to the global targeted sectors reduce or diversify?

Manuesh relative: I believe that India will probably perform better than the US. The AI investment cycle in the US seems to have a peak and Nasdaq is confronted with a headwind because of the high ratings. India has lagged behind the last 8-10 months than emerging markets, but this underperformance can now turn around. In the next 6-12 months, Indian shares could perform relatively better than other emerging markets.

In comparison with bonds, the long -term bonds could yield attractive returns in the coming three years, in particular if the rates fall from 7.15% to 6.15%. However, short -term bonds are expensive, so they may not be that attractive. In general, a balanced portfolio with moderate exposure to shares is logical, although investors have to temper expectations, because the return in India can be modest in the coming year, about 10%, in contrast to the higher return that has been seen in the past five years.

How should investors approach the allocation of debt to shares?

Manuesh relative: Allocation depends on individual circumstances. For example, a senior investor can give priority to instruments with fixed-income income that yield 8-9%, while a younger investor can assign more to shares. In general, maintaining a decent allocation of shares is generally reasonable. Because market timing is difficult, systematic investment plans (SIPs) and spread investments in the coming 12 months are wise.

What about the dollar? Can it weaken further?

Manuesh relative: The USD can somewhat reinforce against developed markets in the case of global risk-off scenarios, but the INR has already absorbed the most losses. From a domestic point of view, the USD-Inr rate is probably approaching its peak, unless unexpected problems, such as rates, arise.

And gold? Will it remain as expensive if it is now?

Manuesh relative: Gold is expensive and largely speculative, influenced by geopolitical developments. For long periods it does not yield a significant return or dividends. It is very cyclical and performs exceptionally well for a few years, but stood still for decades. Investors must be careful with position in gold, taking into account the fact that it acts in the first place as an alternative currency instead of as a growth -active.