History suggests equity offers better return than risk-free assets: Leo Puri

In a chat with ET Now, Leo Puri, MD, UTI Mutual Fund, shares his medium term outlook on the market.

ET Now: What would be your advice to an average investor when it comes to Indian markets because volatility has also been a norm for some time? How do you see the domestic market doing, say, in the next two to three years from now?

Leo Puri: Investing, as you know, is always a relative gain. Certainly our view is that if you look at relative to a risk-free investment, whether it is government bonds, fixed deposits in public sector banks or sovereign institution, you are likely to see anything in upwards of 5 per cent alpha being generated comfortably by the equity market. History would suggest that; it is unlikely to change. So in terms of asset allocation, equity is in particular remains a very important place for Indian households to make sure they participate…