Manish Goel, Founder-Director at Equentis Wealth Advisory Services, believes that the current correction of about 15 per cent in the Indian markets over the past six months is a much-needed breather following a strong post-Covid rally. Despite global uncertainties and macroeconomic trends, the long-term economic outlook remains strong, with GDP expected to grow at 6.7-7 per cent and corporate earnings on the path to recovery. Here are some edited excerpts from his recent interview:
What is your current outlook on stock markets given the macroeconomic trends and global uncertainties? Are we seeing a bear grip on the markets?
Goel points out that the recent correction in the Indian markets is not solely due to external factors like Trump’s tariff war and FII selling. Instead, domestic reasons, such as a shift from saving to investing post-Covid, have led to slower economic growth. However, with GDP growth expected to pick up and valuations becoming more attractive, Goel remains optimistic about the long-term prospects of the market.
SEBI has allowed specialised investment funds (SIFs), do you have any plans to launch such a product? Will SIF impact PMS like you?
Speaking on the introduction of Specialized Investment Funds (SIFs), Goel sees this as a positive development that offers HNIs more flexibility and personalized investment options. While SIFs may bring more competition for Portfolio Management Services (PMS) providers, they also push for innovation and improved services within the industry, ultimately benefiting investors and the market as a whole.
What is your advice for investors looking to build a retirement corpus in the current market?
Goel advises investors to tailor their retirement investment strategy based on their time horizon. For those with more than 15 years until retirement, he suggests using the current market dip as an opportunity to invest in quality stocks and mutual funds at a discount. On the other hand, investors closer to retirement should focus on preserving their wealth by gradually shifting towards safer options like bonds or annuities.
Do you see the Budgetary I-T relief fuelling retail investments in equity markets?
Goel highlights the positive impact of tax relief measures in driving India’s economic recovery, as seen in the recent GDP numbers. Lower income tax burdens and reduced interest rates have stimulated private consumption and investments, leading to an uptick in economic growth. With GDP on an upward trajectory and increasing demand, the economy appears to be on a path towards recovery.
Published on March 13, 2025
