chandresh nigam md and ceo axis mutual fund says that some investors have used the sharp rise in the market to cut exposure as worries about recovery still remain heres the wealth managers take the upcoming riskometer what investors should expect going forward and more in this interview with et wealth how much of this market uptick is tied to actual fundamentals is the current rebound transitory or long term in naturewhen this pandemic arrived people were very concerned because it was an unknown variable we didnt known how this would unfold initial numbers on fatalities coming from some countries were fairly high that got reflected in global markets there was some weakness in the market even prior to this and it triggered the correction then the lockdown showed the economy would take a big knock and there was no visibility on how things would improve but as the economy started to open up and businesses started to get back on their feet activity improved while not back to normal many things are back on track market has steadily responded to signs of recovery for many products demand has reverted close to precovid levels some sectors like it and pharma have benefitted from the situation keeping markets buoyant even some sectors that got impacted like auto consumer discretionary have bounced back wellbut markets always discount news in advance and so are pricing in a healthy recovery in coming months it is suggesting that the recovery will broadly continue even if a few sectors remain under pressure the rural sector has also aided demand recovery if the covid situation continues to improve the market will continue to go up with intermittent corrections the momentum building up in parts of the economy will spill over into other areas as sentiment improves business confidence will improve we can expect a reasonable upmove which can last two to three yearsshould investors moderate return expectations going forwardthe market has given 810 return over the past four or five years that should be the expected return going forward i dont think there is reason to moderate return expectations any further you cant expect markets to deliver the kind of returns it has over the past six months we should expect good quality businesses to do well good businesses have been beneficiaries in this as smaller players have found it difficult to compete you cant expect markets to deliver the kind of returns it has over the past six months we should expect good quality businesses to do well chandresh nigam md and ceo axis mutual fundis the quality basket likely to reign over the market for more yearsour investing style and preference is for quality stocks because that is where the money is made in the long term that doesnt mean it cannot have periods of underperformance it happens when there is a massive liquiditydriven rally you have seen some of it playing out in the last six months i will prefer to stay with high