Consumption, and demographics will drive Indian businesses and hence stocks

The following was the statement made by Kunal Kapoor, Global President, Morningstar at Morningstar Conference in Mumbai on Oct 17-18, 2016

Consumption, and demographics will drive Indian businesses and hence stocks.


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The following are few highlights of Kunal Kapoor's interview in Mint newspaper on Oct 18, 2016

Diversified long-term portfolio

1. We are big believers in diversified long-term portfolio.

That may be disappointing to someone who live and die by the next hot idea and returns over next 1 or 2 months.

When one builds a portfolio with assets like equity, if one can't hold for 3-5 years, then one should not probably own them.

US Elections, interest rates rising - volatility 

2. From a long-term investor perspective, ultimately, if one invests in a good business, you tend to be okay regardless of what happens in one or two elections.

When I look at the environment, the thing that impacts equities meaningfully is interest rates. In the short run, interest rates can be a source of volatility. In the long term, it probably doesn't matter. Our view doesn't change.