Strong earnings growth can be market propeller: IDFC Mutual Fund CEO

"With most indirect tax decisions shifted to the Goods and Services Tax Council, recent Budgets have become less eventful from a sectoral perspective"

The equity market delivered subdued returns in 2022 amid uncertainties at the macro level, starting with the Russia-Ukraine stand-off, rate tightening, and high inflation. Headwinds loom large on 2023 returns, given the recessionary fears and high valuations of Indian stocks. Vishal Kapoor, chief executive officer, IDFC Mutual Fund (MF), says markets can still go up if earnings growth turns out to be strong this calendar. In conversation with Abhishek Kumar, Kapoor says less risky funds like the balanced advantage or other hybrid offerings should be the go-to option for new investors. Edited excerpts:
 
High valuations and global slowdown worries