you think the merger of psu banks will benefit investors we see the proposed merger of psu banks as a positive development first it is likely to improve the governments fiscal balance the weak fundamentals of midsize and smaller psu banks would make fund raising a challenge for these banks as a consequence the government would have been required to periodically infuse capital in these banks which would have adversely impacted its fiscal situation bigger psu banks would be better positioned to raise capital secondly the bigger psu banks have been able to demonstrate higher nonperforming loan recovery and upgradations in the past as such bigger banks are likely to be better placed to enforce npl recovery mechanisms post consolidation particularly given that these banks would have a larger share of loan composition collaterals with them lastly consolidation of psu banks may prevent market share loss facilitated by creation of a stronger balance sheet fresh capital and bigger scale post consolidation whats your view on the telecom sector the telecom sector has been undergoing consolidation over the last couple of years from 1012 players the telecom industry now has three large players post the entry of new incumbents with significant 4g capacity we have seen a sharp increase in competitive intensity in the sector falling tariffs increasing leverage and decline in profitability have compelled several small players to scale down expansion plans bigger players with strong balance sheets have started the process of consolidating into nationwide players industry dynamics are likely to remain challenging in the nearterm given high competitive intensity we continue to remain cautious on the sector what is your advice for investors equities as an asset class generate robust riskadjusted returns in the longterm however there may be some years of suboptimal returns investors should therefore stay invested in equities for a longer period to earn expected returns additionally investors should invest on a regular basis so as to generate superior returns in the long run investors with limited market information should seek guidance of experienced advisers to understand their riskreturn profile