Shares of a number of companies provide opportunity to invest at current level of valuations with the potential to give sound returns in medium-term, ICICI Prudential Mutual Fund Managing Director and CEO Nimesh Shah said today.
"Valuation of equities across market capitalisation is attractive barring select 10-12 stocks that have seen appreciation primarily based on FII interest. Most other stocks are trading at attractive levels. Generally, we have seen equities provide healthy return when bought during periods of low GDP growth and we feel that we are in such a period," Shah said.
As per the fund house, this is the right time to invest in equities.
"Whenever we have been in a situation where GDP growth is low, investing in equities during this period has historically proven to offer good returns. For instance, 2001-02 and 2002-03 were years of low GDP growth which offered a good investment opportunity yielding attractive returns," Shah said, adding that current scenario appears to be a good time to look at equities based on investing for the long-term.
Emphasising on the job creation, Shah said, "Whichever government comes to power post general elections, there is a great need of creating jobs to benefit from demographic dividend".
On the domestic economy, Shah said things were improving with a number of steps taken in the last one year.
"Trade deficit is down. Concerns over the current account deficit seem to be receding. Government is serious about containing fiscal deficit. So, overall economic situation is improving," Shah said.
He said the next government has to follow the path of economic reforms given the current state of affairs and also create jobs for a very large number of youths to benefit from the demographic dividend.