DSP Investment Managers mention in their Annual Note that India story is a reality now, despite the short-term challenges. Current multiples for Indian markets (the MSCI India Index is trading at 21X Forward PE) are high compared to history and the returns from these levels have been moderate in the past.
The annual note of DSP, 2023 mentions representation of a major shift and a significant opportunity for investors as India continues to rise in the global economy. The “Value” and “Momentum” factors tend to exhibit more significant fluctuations.
Vinit Sambre, Head – Equities, DSP Investment Managers Pvt Ltd., said, “Indian investors are choosing to participate in the growth of the Indian economy and markets. As we have emphasized in previous annual notes, such as “Shooting For The Moon” and “Principles, First”, it is not prudent to exit the equity asset class when valuations are high. Instead, what has often made a difference is avoiding significant mistakes at pivotal moments, maintaining investment discipline, and accepting that higher equity returns come with a certain level of volatility.” The note also suggests that it is important to rebalance portfolios so that the appropriate mix based on the goals and risk profile is achieved.