Markets are no longer as correlated as they were in 2009-10: Nitin Jain

In a chat with ET Now, Nitin Jain, CEO, Global Asset & Wealth Management, Edelweiss Financial, shares his view on the reasons behind fund managers’ calmness, despite prevailing volatility across the globe.

ET Now: I am very impressed with the way how fund managers are not doing anything silly — everyone is ignoring Greece and everyone is ignoring China. What is your view?

Nitin Jain: In the last two-three years, there have been red alerts and people have been very cautious. So, anybody who has missed rally in the Chinese market was unhappy.

It is a phase where you evaluate the fund’s performance. But having said, I agree that markets are much matured now. They are no longer as correlated as they had become in the late 2009-10s. May be, in the last two-three years, different central banks have had a different approach towards markets. Fund managers, even when I travel globally, not necessarily bucket these completely distinct economies into one artificial bucket saying ‘here comes my allocation to emerging economies’.

People are going a little deeper to assessing country-specific risks. They are looking at specific opportunity risks and are making their bets around that. There is a lot of maturing that is happening and this trend will continue.