Centrum Wealth Limited, the wealth & distribution arm of the diversified financial services major Centrum Group, today released its Fund Managers' Survey report titled 'India Market Pulse 2024: A Survey of Opinion Leaders' providing valuable perspectives from leading fund managers and investment professionals, on opportunities and risks across asset classes in the year ahead.

The exclusive survey polled CIOs and fund managers from top Indian asset management firms collectively managing over 80% of the Indian mutual fund industry's assets. Through direct interaction with these influential decision makers, the report shares key insights into their outlook and strategies for equities, fixed income and other asset classes.

Key findings from the Report:

  • Global Growth Outlook Subdued: 67% of all respondents expect global growth in 2024 to be weaker than in 2023, citing tight monetary policy as a key reason.

  • India Seen as Bright Spot for Growth: While there is near unanimity about Indias contribution to global growth, 89% foresee favorable capital flows into India.

  • India GDP Growth Seen Between 6-7%: More than 75% of participants expect Indias GDP growth in FY25 to be in the range of 6-7%.

  • Government and Private Capex Top Growth Drivers: Government capex ranked 1st and private capex ranked 2nd as growth drivers.

  • Earnings Growth Seen Above Market Expectations: On a 1-year forward basis, the majority of respondents see their portfolio earnings growth higher than Nifty's consensus expectations.

  • Valuations Not Seen as Cheap Currently: Almost all participants are clear that their portfolios are not cheap vis--vis history.

  • Portfolios Fully Invested in Equities: 78% are fully invested in equities with up to 5% cash. Mega caps most attractive.

  • Industrials, Financials Top Ranked Sectors: Industrials, Financials, Realty & Home improvement, and Autos are top-ranked sectors.

  • Fed Expected to Cut Rates by 100bps: 59% of respondents expect rate cuts by 100 bps from the US Federal Reserve in 2024.

  • RBI Rate Cuts Expected in H2 2024: 65% foresee rate cuts from RBI to begin in H2, 2024.

  • Corporate Bond Spreads Seen Widening: 82% expect corporate bond spreads to widen over government bonds in the next 6 months.

  • Credit Quality Seen Plateauing: 53% see credit quality plateauing in FY25 after improvement in FY24.

  • Long Duration Bonds Most Favored: Long-duration Gilt and dynamic bond funds most favored fixed-income strategies currently.

  • Food Price Shocks Top Risk: Food price shocks ranked highest among risks to fixed income market.

  • Short Term Yields Seen Falling More: A significant majority expect yields to decline with half the respondents expecting a sharper fall in short term yields.

Detailed report can be read here - tinyurl.com/3aemk368

Sharing his thoughts on the report Sandeep Das, MD & CEO, Centrum Wealth said, "We are pleased to share key insights from Centrum Wealths India Market Pulse 2024 report. This exclusive survey of the countrys leading asset managers provides a valuable window into how top investment professionals are navigating opportunities and challenges this year.

By polling CIOs representing over 80% of assets under management, we gain invaluable perspectives on their outlook across asset classes amidst economic uncertainties. Though risks persist globally, Indias growth momentum remains positive. As the investment landscape grows more complex, reports like this serve as an essential compass to benefit from the best minds."

"2024 will be a pivotal year globally and for India," said R Shankarraman, ED & CIO - Third Party Products, Centrum Wealth. With looming elections, normalized economies post-COVID, and tightening policies, markets contend with evolving risks even as climate concerns persist.

"Based on the survey we observed that there is a broad consensus on Indias economic and political continuity, alongside optimism on corporate earnings growth. Within this, moderating equity return expectations strike a note of caution. On fixed income, there is confidence that rate hikes have peaked with expectations of a deferred and shallow rate cut cycle ahead. Easing financial conditions signal opportunities across the spectrum."

About Centrum Wealth Limited

Centrum Wealth Limited (CWL) provides customized distribution services to high-net-worth individuals, family offices and corporate treasuries. Our client-focused approach and expertise span diverse asset classes, delivering innovative solutions since 2011. With operations across 16 locations, including Singapore, we excel in both traditional and alternative investments.

Disclaimer - Verbiage in connection with the products and services such as 'investments', 'advise' or 'services' appearing in this release, refer to offerings of Centrum/affiliates. Use of the word 'portfolio' refers to a set of securities or investments and does not extend in any manner to Portfolio Management Services. Past performance is no indication of future returns. Please read the comprehensive disclaimer available at centrumwealth.co.in/disclaimer.