Birla AMC sees 12%-15% annual gain on Nifty

If Nifty 50 at new record high is making you uncomfortable, here is some good news. Aditya Birla Sun Life AMC co-CIO Mahesh Patil, who oversees equity assets worth Rs 85,000 crore, is expecting the Nifty to deliver 12-15% annualised returns in the next 3-5 years.

The fundhouse is confident about a rebound in corporate earnings in second half of fiscal 2018 and hopes that would set up good momentum going into fiscal 2019.

“With lower bond yields and fixed deposit rates and falling real estate and gold prices, equities with reasonable valuations and good expected earnings provide good alternative for investment with a horizon of three plus years,” said Aditya Birla Sun Life AMC chief executive officer A Balasubramanian.

Patil, who oversees 20 equity funds at the AMC, is bullish on financials, consumer staples, consumer discretionary, infrastructure and telecom. “Year 2018 would see the benefits of the reforms government has taken to make India ‘Stronger for Longer’,” added Patil, who is asking investors to bet on on large-cap and multi-cap funds for medium to long term investment horizon.

For investors looking at fixed income, Maneesh Dangi, co-CIO, Aditya Birla Sun Life AMC advises low duration and fixed maturity plans for those with conservative risk profile.

“Active investors can look at short-term funds, corporate bond funds and credit funds,” said Dangi.