Expect moderate growth amid muted earnings in 2025: Dikshit Mittal
«But now, for the first half of this year, earning growth has been slightly muted in mid-single digit and that is expected to remain that way at least for the next one to two quarters. So, to that extent, one has to moderate the return expectations going into next year,» says Dikshit Mittal, Senior Fund Manager-Equity, LIC MF.
What do you make of the markets right now and there is debate which is underway whether 2025 is going to be a great year for the Indian equities or is it going to be a year of trimmed in very moderate single digit kind of gains? What is your estimate?
Dikshit Mittal: Last two-three years returns have been very, very strong. In fact, compounded returns have been in high teens. So, to that extent, coming into next year, one has to moderate the return expectation. So, we cannot expect the same kind of returns we have generated last year.
And reasons for that is, one is our earning growth is slightly getting moderated. Last three-four years, we have been growing in high teens, more than 20% CAGR also. But now, for the first half of this year, earning growth has been slightly muted in mid-single digit and that is expected to remain that way at least for the next one to two quarters. So, to that extent, one has to moderate the return expectations going into next year.
So, amid this fact that the earnings growth would be moderated, where should one put in money? Should they be more inclined toward the largecaps, midcaps, or the smallcaps?
Dikshit Mittal: Basically, we are market cap agnostic, so
