Annual Market Outlook 2025" report by Mirae Asset Mutual Funds

Outlook for 2025 :

• India’s medium to long term outlook remains robust, driven by strong macro fundamentals deleverage corporate balance sheets, robust asset quality, fiscal discipline, favourable demographics, digitization, rising income levels, etc. Household debt levels are also reasonable compared to global standards. India's aggregate debt to GDP is lower than in 2010, while it has risen globally.
•  We remain constructive on equities from a medium-term perspective driven by strong profitability and free cash flows. Earnings growth may be a key driver of returns in 2025. Given that valuations are trading at a premium and there is froth in certain segments of the market, bottom up stock selection will be important.
•  On the Sectoral front, we remain constructive on Banking & Financial Services given the reasonable valuations and higher return ratios ‒ ROE (Return on Equity) and ROA (Return on Assets). We are also hopeful of revival in consumption and positive on manufacturing given the Government’s thrust and China+1 strategy.
•  Key things to watch out for in 2025:
  (a) US policy on trade/tariff, fiscal expenditure, and deregulation
  (b) Rate trajectory by the central banks,
  (b) Oil price trend,
  (c) Geopolitical issues and
  (d) Recovery of consumption
  (e) Private capex growth including Real estate.
• While equities have delivered better returns, we would recommend investors not to extrapolate last three year returns and align their return expectations accordingly. It’s important to stick to the defined asset allocation driven by the risk appetite, financial goals and time horizon. Investors may continue to allocate in equities in a staggered manner via Systematic Transfer Plan (STP) /Systematic Investment Plan (SIP) with a long-term perspective. Depending on the risk profile, one may consider investing across market cap strategies. Hybrid funds, given their flexibility in asset allocation can also be made part of the core portfolio. In thematic funds, one may consider Consumption Fund for expected consumption recovery and Banking & Financial Services Fund given the decent risk-reward.

 

 

 

Regards,
Iffat

Strategic Growth Advisors Pvt. Ltd.

402, Pressman House, Near Orchid Hotel,

70A, Nehru Road, Vile Parle (East)

Mumbai - 400 099

Mobile: +91 7506531308

Email: iffat.jariwala@sgapl.net

Website: www.sgapl.net

 

 

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