Bandhan Mutual Fund Equity Outlook 2024

In @Bandhanmutual’s Equity Outlook 2024, titled “A Tale of Three Probables,” we explore how historical cycles might offer insights into our current high inflation and interest rate scenario. 


A quick look at the key takeaways from the report. But before that, 


Just in case you missed it, check out @Kuvera_In’s insights from investors –  India Rising | 2023 Review and 2024 Outlook.





Cycle I – The 1994-95 Soft Landing: The Fed took action, inflation was tamed, and the economy sailed smoothly. ⛵ GDP growth stayed healthy, and the dollar weakened. 


Cycle II – The 1973-79 Inflation Strikes Back: High GDP growth led to soaring inflation. The Fed fought back with high-interest rates, and the dollar was weak. 


Cycle III – The 1945-50 Debt Deleveraging: Post-WWII, high inflation met government debt. The Fed kept rates low to stimulate growth. 


FD Rates October 2023


@bandhanmutual report says that 2024 might echo the 1994-95 cycle: 


??US inflation fell from 9% to 3%

??Fed hiked rates, but strong GDP & low unemployment persisted

??If real rates stay high, US economy may slow, with falling rates

??Neutral outlook with global headwinds, equity tailwinds


1970s-style inflation resurgence is unlikely, but not impossible. 


??Fed might cut rates due to high government debt-GDP, boosting equities, economy, and valuations.


??Inflation resurgence unlikely, credit risk reduced.


??Emerging markets could outperform as developed markets see falling rates. 


Option 3: Tail risk of tightening causing a credit event or recession. The odds are lower now, but still, a concern. ?


? On the global stage, emerging markets might outshine developed markets as interest rates in the latter fall. 


?? India Shines: Domestically, India’s looking bright with strong demographics, political stability, and reforms paying off. 


@bandhanmutual report suggests, while high returns may not continue for the broader market, small and midcaps still deserve a spot in your long-term equity portfolio.? 


Follow Kuvera for more interesting insights from the world of finance, economy, and investments.    


Interested in how we think about the markets?

Read more: Zen And The Art Of Investing

Watch here: Investing through various economic and market cycles

Start investing through a platform that brings goal planning and investing to your fingertips. Visit to discover Direct Plans and Fixed Deposits and start investing today.

Leave a Comment