After BJP-led NDA returned to power with a massive majority in the Lok Sabha elections, the stock markets have given a thumbs-up to Narendra Modi-led government.
In an interview to CNBC-TV18, Ashish Shanker, head-investment advisory at Motilal Oswal Wealth Management and Abhijit Bhave, chief executive officer at Karvy Private Wealth discussed whether one needs to tweak their asset allocation and is there a need to change the kind of funds one has invested in.
Shanker said, “Our hypothesis was that you will see a broader earnings recovery by the end of this year and that hypothesis still stands true. Yes, in the large-cap space, let us say Nifty, the valuations are expensive. So, going forward, the return expectation has to be a little muted."
Bhave believes that good days are here again, "I would not go with muted expectations. I believe that the next 5-7 years possibly may be the best years of the equity market in my life. I have been working in the market for the last 24 years and I am very positive. That is why we have been equity overweight right before November."