"Valuation is cheaper now than before"
Angus W. Stening, CEO (Asia & Emerging Markets), was recently in the country to formerly launch the venture. He spoke to BT’s Clifford Alvares on the mutual fund business, and its prospects.
On Baroda Pioneer AMC
We don’t want to build a European business in India. We are here for the long term, and we will build an Indian business. We have got some credible products. We will invest in our distribution and do some new product launches.
On the retail investor
Retail equity trend is only now getting started in India, and there’s a long way to go. I believe it will take some time before we see some traction in India.
On the markets
I am confident about the structural growth story of India. Global credit issues are playing on the market and the commodity prices are fuelling inflation. It will slow down growth. You will probably see a lot of volatility in India. The valuation is cheaper now than at the beginning of this year. It’s good for us as fund managers, we can buy stocks cheap.
On varied products
Markets are now much more complex than before. The product offering is going to get more complicated as there are many asset classes. Investors should know what risks are associated with each product. Investors must learn to be disciplined, and choose the products that suit their risk profile.
