Tata Mutual Fund on Wednesday said the house is upbeat on consumption and corporate lenders.

In an interview to CNBC-TV18, Rupesh Patel, fund manager, said, "If one looks at the current market scenario, we are at a cyclical low in terms of our earnings. If you look at corporate profits as a percentage of GDP, we are below three percent, which is much lower than our long-term averages. As far as the banking system is concerned, we are seeing bottoming out of credit cycle."

"Therefore, over medium to long-term the outlook for earnings growth is improving. But in the near-term, there are reasons to get worried from the global side and volatility around election time. Over the medium to long-term, we are still constructive on equities as an asset class," Patel said.