Anirudha Taparia of 360 ONE Wealth discusses how different asset classes will perform in the year ahead.
CY22 has been a year of macro uncertainty and volatility, and there are concerns that it could be a 2008 redux. What is your view?
Anirudha Taparia, co-founder & joint CEO, 360 ONE Wealth: Yes, it has been an unprecedented year with all the macro uncertainties at play. Going into the new year and 2024, it will all boil down to two things: How worldwide economies tackle inflation and, second, the interest rate trajectory.
Has the market priced in all the negatives?
Taparia: We all pretty much have a consensus on what the global scenario is and the things working in India's favour. Most of us are following a ladder-up approach, in terms of investments. Interest rates are moving upwards and there may be another hike. So, our advice to clients would be to keep locking in gains on the three-year and five-year bucket on the fixed income side. We are slightly cautious about equities. But for which way the war could turn, all other factors are pretty much priced-in.
So, is there a strong case to invest in real estate?
Taparia: On the residential side, Mumbai, Bangalore, or Delhi, prices are pretty much at the highest. In fact, prices in Gurgaon have doubled. The Covid triggered the need for people to move into bigger houses and, besides, with a lot of business exits and companies getting listed, the first thing a person does with the money is to invest in a house. On the commercial side, during Covid there are renegotiation of leases downwards. But a look at Embassy and Mindspace quarterly results show that rentals are edging up. DLF is delaying its REIT because they are waiting for another six months to a year to leverage on the full potential of an escalation in rentals before hitting the market.