Raamdeo Agrawal: 10% Market Drop Could Boost 5-Year Returns to 18% Annually

• Motilal Oswal's Raamdeo Agrawal states a 10% market correction could increase 5-year annual returns to 17-18%, with well-selected portfolios potentially yielding 30-35%.
• Historically, sharp market corrections, like the post-COVID-19 crash, have set the stage for powerful long-term compounding cycles, delivering 21-22% returns.
• He advises "buy and hold" is not blind; investors must evaluate business fundamentals and stay invested during a company's growth phase, not exiting early.
• Agrawal cautions against timing market bottoms, emphasizing that current corrections are making valuations attractive and intrinsic value is key over short-term price.
• Identifies digital platforms as a massive Rs 50-100 lakh crore opportunity, though profitability is evolving, requiring strong conviction in business value for long-term gains.