Global investors eyeing cheaper alternatives as India’s valuations stay high: Manishi Raychaudhuri
«I think investors are beginning to understand that there are cheaper alternatives which give them similar growth profile, similar earnings growth profile in the medium term but available at far lower valuations,» says Manishi Raychaudhuri, Veteran Investor In Asian Equities.
They say that if you are a long-term bull, ETF is the best and the cheapest way to go. So, I am just keeping it very, very, very simple. But your clients would say okay we know that already. Tell us what we do not know. So, what are you telling your clients, your prospective clients that what they do not know in terms of the market links, connections, and valuations?
Manishi Raychaudhuri: Well, in the near term I am perhaps telling them not to invest in India, not even in the ETFs. In case you are looking for a parking space for your money, gold is a good alternative. Gold ETFs are what I am doing personally. So, yes, I will elaborate on all these things.
Why not India?
Manishi Raychaudhuri: Why not India? Two things. Number one, look at how and this is possibly the most important variable that we all need to look at, the consensus earnings estimates. I actually pay relatively less attention to this whole topic and discussion of GDP growth, etc. It is a good talking point, but it does not really generate returns. If you look at consensus EPS estimates for India, any index that you look at, they are down about 7% from late September. The market is down 10%, but it means that the valuations have not really corrected all that much, they remain
