Re-EMERGENCE OF EQUITY INVESTORS EXPECTED

While the current year may see re-emergence of equity investors after subdued participation for close to five years, debt investments will remain a key investment option for retail investors, a top company official of Baroda Pioneer Mutual Fund said. "This year will be emergence of equity investors. I see them coming back through some format or other into the equity market. Meantime, debt will continue to attract retail investors," Managing Director of Baroda Pioneer Mutual Fund, Jaideep Bhattacharya told PTI in an interaction here. He also said investors will move from real assets like gold and real estate to financial assets this year. Attributing the optimism of return of equity investors, he said mutual fund industry has seen inflows into equity schemes in the recent months, which is indicative of interest of retail investors in equities. On the macro front, Baroda Pioneer MF sees the GDP growth next fiscal to be around 5.2-5.5 per cent with easing of inflation in the coming months. "As a fund house, we are bullish in 2014...we expect next fiscal's GDP growth to be around 5.2-5.5 per cent...earnings growth will be better than last year...," Bhattacharya said. He, however, said that outcome of upcoming general elections remains a key risk to market movements going ahead. "Stability of government is important.. from Indian perspective, investors will definitely look for stability and investment climate," Bhattacharya said. Talking on the debt funds in mutual fund industry, he said money market funds will continue to dominate till March, and post that, longish bond funds will attract investors' interest. Bhattacharya also pointed out that stock picking would be the flavour of the season with IT, pharma, auto and banking stocks attracting interest in this calendar year.