Balance sheet of financial firms in best shape ever: DSP MF MD & CEO

'Every investor's time horizon and risk appetite is different hence I can't give a single answer for a diverse investor base'

Companies are expected to report reasonable earnings growth in the quarters ahead leading to less expensive valuations, says KALPEN PAREKH, managing director and chief executive officer, DSP Mutual Fund. In an interview with Abhishek Kumar, he explains why his fund house has exposure to financial sector companies and names sectors that are likely to do well. Edited excerpts:

What is your outlook on the equity market? What are the factors that will decide the future market movement?

Equity returns are a function of valuations and earnings growth. At present, good Indian companies are neither cheap nor very expensive but some fairly valued