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More risk-taking by funds seen in 2014

Some analysts wonder whether Fed tapering fears are overblown given sustained liquidity

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Equity returns: Equities are seen as the only game in town for inflation-beating returns in a fragile global economy and liquidity-flushed markets. Analysts also prefer equities as an asset class over bonds this year. - PHOTO: BLOOMBERG

AFTER missing out on a breathtaking stock-market rally in the past five years, conservative funds are under greater pressure to take greater risks, observers said. Despite having projected single-digit returns next year, equities are seen as the only game in town for inflation-beating returns in