Consistency in investing is the key for next 1-3 years

Howard Marks of Oaktree Capital has a good analogy for the economy and markets. For investors who are showing investing consistency, the twin advantage is that not only is a transfer of assets taking place to their portfolios, it’s taking place at good prices. Financial assets can give decent returns in coming years, and we expect to see further inflows into mutual funds as investors prefer financial assets over physical ones. Therefore, in the present environment, to invest with a near-term view of one-three years, the hybrid and asset allocation funds such as balanced funds, balanced advantage funds and equity income funds present a better opportunity. With a longer view of three years and more, pure equity funds with a large-cap bias present a good opportunity.