You will make 12-15% CAGR but don’t invest for 5-6 month horizons: Raamdeo Agrawal
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Indian equities can compound at 12% to 15% annually over the long term, but the market isn’t the place for investors with a 5-6 month view, Motilal Oswal Financial Services’ chairman Raamdeo Agrawal said. Speaking to The Economic Times on the sidelines of his firm’s investor conference, the veteran investor advised caution on lumpsum deployments given current valuations and global headwinds. “Everyone will get about 12-15% over 15-20-25 years,” Agrawal said, noting that index investments alone can generate around 12%, while small-cap and mid-cap allocations may add modestly higher gains. But he cautioned against near-term expectations. “If your vision is 5-6 months, don’t come to this market.” For investors sitting on large sums, Agrawal recommended staggered allocations through systematic investment plans. “If you have Rs 12 crore, put Rs 1 crore every month. You will be able to average it out and have peace of mind irrespective of what ...