Better equity performance now,says Reliance MF

While equity markets continue to remain under pressure,Reliance Mutual Fund says the headwinds are peaking and investment in equities now would generate good returns over the next 12-18 months.

The fund house also expects inflation to come down to around 6 per cent by September,2012 and hit a low of 5 per cent by March,2013. Interest rates which have been rising since March,2010 is expected to witness a 100 basis point cut by August,2012 and may even go down by 150-200 basis points by March,2013.

We reiterate that notwithstanding the risks in the next few months,if one invest in equities now,in the ensuing period one can expect relatively better returns over the following 12 18 months, said a Reliance Mutual Fund report.

The fund house projects that as a result of higher portfolio flows,surge in FDIs and better-than-expected current account deficit,the rupee may appreciate by 4 per cent to 44 by August,2012 and by 9 per cent to a level of 42 by March,2013.