Retail investors can put their money on Indian equity market for a long term, said Raamdeo Agrawal, Joint managing director of Motilal Oswal Financial.
He advised regular investment instead of lumpsum ones for value creation over a longer term for household investors and said that mutual fund investments are likely to grow 10 times in about eight years.
Talking to the media at the Stock Pitch Contest for students of B-Schools organised by Motilal Oswal at Indian Institute of Management – Ahmedabad on Monday, Agrawal agreed that Indian stocks are priced high but despite that, it is prudent to invest in equity products.
He, however, had two suggestions. One was letting experts make investment decisions on behalf of the individuals and the other was regular investments in the form of monthly Systemetic Investment Plan (SIP) rather than making lumpsum investments.
"Those who are making lumpsum investments may be at risk because the stock market can move in any direction in a short term. It is advisable to invest through SIPs," he said adding that more and more people were investing through mutual funds rathering than picking the stock by themselves.
Agrawal hoped that investment through mutual funds will grow multiple times in the future as still most of household savings were parked in form of fixed deposits rather than through mutual funds.
"Investment through mutual funds is about Rs7 lakh crore while bank deposits are much more. Investments through mutual funds are likely to become 10 times by 2025," said Agrawal.
Motilal Oswal had organined the Stock Pitching Contest where close to 450 teams had particiapted, from which 13 finalists had competed at IIM-A.
The idea of the contest was to inculcate a thought in B-School grads that equity sector provides promising opportunities for career as well. "While people look at IT and FMCG companies for careers, equity is neglected inspite of the fact that it has grown manifold and is poised for growth as well," said Agrawal.
A team from ISB-Mohali won the contest, while a team from IIM-Rohtak was first runners up and one from IIM-Banglore was second runners up.
SUGGESTIONS
- Let experts make investment decisions on behalf of the individuals.
- Regular investments in the form of monthly Systemetic Investment Plan (SIP) rather than making lumpsum investments for value creation over a longer term.
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