The Sensex may touch 100,000 in another five years, said Ashutosh Bishnoi, managing director and chief executive officer of Mahindra Manulife Mutual Fund, speaking to reporters in New Delhi on Saturday.
With the Indian markets falling recently on the back of the fear of the impact of Omicron, the new Covid variant, investors are once again unsure about the market direction.
However, in the long term, there may not be much to fear for investors. The growth mentality in India will be driving the markets in the long run. "Everyone in the country wants to do better, so there's growth in the long term," said Bishnoi, adding that he had predicted the 50,000 level a couple of years ago when the markets were around the 27,000 level.
"There are incentives for manufacturing in the country and formalization is going up in terms of digital transactions. All this points to growth in the economy in the long term," he said.
Talking about investment in the markets currently, Bishnoi highlighted that asset allocation is key to ride the market.
Mahindra Manulife AMC will be out with its new fund offer, Mahindra Manulife Balanced Advantage Yojana, on December 9.
The fund will follow an asset allocation strategy and is meant for investors who may not be able to switch between equity and debt themselves. The fund will not be based on a quant strategy but will employ its own unique expertise in the area.
Balanced funds give the fund manager the option to switch between equity and debt as per market valuations, within the prescribed limits.
Mahindra Manulife Balanced Advantage Yojana’s indicative asset allocation limit is 100 per cent in equity and equity-related instruments and 100 per cent in debt and money market securities.
The minimum application amount for the NFO, which closes on December 23, is Rs 1,000 and in multiples of Rs 1 thereafter. The fund will be benchmarked against Nifty 50 Hybrid Composite Debt 50:50 Index TRI.
There is a partial exit load in the fund. While 10 per cent of the invested amount can be redeemed on or before three months, from the date of allotment of units, without any exit load, any excess amount will be subject to an exit load of 0.5 per cent if the funds are redeemed on or before three months from allotment. After three months, there will be no exit load on redemptions.