That said, investors with at least 3 years or higher investment horizon must have very high proportion of equities in her portfolio as this has the best odds to give decent inflation adjusted returns.įrom a shorter-term time frame, Bhargava advised asset allocation strategies like balance advantage funds or multi asset funds. Rising share of middle-class consumers would result in faster growth of consumer discretionary products, and technology would play a more prominent role, Ravuri added.Īshutosh Bhargava, Fund Manager and Head Equity Research of Nippon India MF said that given where the markets are, it's better to diversify into few less correlated asset classes like equities, bonds and gold. The government’s encouragement through PLIs and the need for additional sources to reduce dependence on China has created a favourable environment for the Indian manufacturing sector (Electronics, Chemicals, Pharma to name a few). Manufacturing and Consumption are two big themes to track. So, best is to buy good quality MFs, REITs and stay invested. For example, buying good quality companies March 2020 crash should have been the easiest thing to do, but very few could actually do it, and even more frustrating is people actually selling their holding in April-June 2020 quarter hoping to buy them cheap later.
Trying to capture short-term market opportunities is very appealing but extremely difficult to execute. Our preferences are MFs, global, REITs, real estate, stocks, and gold in that order. Asset allocation is the most important part of financial planning. This along with the financialization of savings and lower interest rates, can continue to drive up stock markets. Both favour markets as corporate India is likely to report healthy earnings growth in the coming quarters, said Srinivas Ravuri, CIO Equity, PGIM India Mutual Fund.
EASY MARK GLOBAL INVESTMENT LIMITED DRIVERS
While it is true that stock markets are at new highs and valuations are not compelling, but key drivers of stock prices are corporate earnings growth and liquidity.