Are investors really taking to equity products now that fixed income is less attractive?
There is undoubtedly a trend towards allocating more to equity. But investors are yet to do so in a big way. Even if they are considering more equity, the focus is on short-term exposures. Those who are active in the market are still taking quick decisions regarding entry and exit. In the past, people had the habit of reviewing their portfolios far too often. This habit has generally not changed. As an intermediary, do you think debt investments still have a future? It is not that investors are getting entirely out of debt. The market knows that the huge returns generated by debt investments in the old days will not happen again soon. Those fourteen per cent returns are part of history. However, a section of the market – I am talking about investors with good money to spare – is still looking at parking spaces, complete with tax efficiency. But the smart arbitrage money seems to be moving away. A simplistic four or five per cent return will not make such money come back. How long do yo
