@Mudit.Kushalvardhan - I think what he is saying is that Equity returns would be lower and Debt returns would be better than last decade…does not seem like he is trying to say that debt returns will be better than equity…they may merge so one might think that risk adjusted return in debt are attractive…
Thats what I could infer from the video…
Coming to my thoughts, every year, month, day we would hear different pundits making different predictions/statements…they maybe wrong, they maybe right or we may not understand exact essence of what they say. like above…
To me, biggest threat over long term is becoming a disbeliever in equity. (I can be wrong)
Equity returns may comedown from 15-20% to 10-12% and debt returns may go up from 5-6% towards 8-10% range for whatever reasons in short-medium term…but decent equity should give better returns than debt over long term. Add to it the increase in dividends which in a decade might be equal to debt returns of last couple years…
Lastly, leave a decade, in last few months itself decent equity has given 30-40% jump from their crashed levels for any brave incremental money that might have been invested…that would take care of half decade of debt returns on that incremental money…so biggest risk IMO is to become disbeliever in equity over long term…(Again, I can be wrong)
First, we need to decide how much we believe in equity/equity MF and put our efforts in right direction accordingly to set up our own equity/equity MF framework. Else simply invest in Hybrid funds which takes care of both equity/debt and their allocation levels or become macro experts and invest in equity/debt and rotate…choice is yours…
Disc: Above thoughts are no advice or recommendations but only for academic purposes. I can be completely wrong in all my assessments. Not eligible for any advice.
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