As the Indian stock market is undergoing rapid changes across all segments, mutual fund investors need to position themselves strategically. Given the current macroeconomic environment, maintaining a spirit of diversification is crucial. Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Private Limited, emphasizes the importance of a balanced allocation between large, mid and small cap funds.
Swapnil Aggarwal, director of VSRK Capital, recommends investing in long-term funds. He suggests that thematic investment funds, which often include significant allocations to multi-cap and flexi-cap funds, are worth considering. “Proper asset allocation is currently essential. While the market is not expensive, many stocks have undergone a 30% to 40% correction from their lifetime highs. Large-cap stocks have underperformed, which may deter retail investors,” notes Aggarwal.
Strategic investment focus
Experts suggest that investors should focus on large-cap stocks over small and mid-cap stocks, especially if they are currently holding SIPs in those segments. Maintaining these SIPs is advisable considering a long investment horizon of more than 20 years, which could yield favorable returns.
For large-cap exposure, it may be useful to park money in liquid assets over the next four to six months and initiate a systematic transfer plan (STP). Maurya adds: “Look for fundamentally sound and high-quality companies. Short to medium term debt funds can provide stability and a steady income stream. For those with a higher risk appetite, thematic investments in technology, healthcare and infrastructure can align with the Indian growth story.”
Market trends and performance
According to market experts, systematic investment plans (SIPs) currently serve as effective tools for wealth accumulation through long-term investments that calculate the cost of the rupee. However, investors should regularly review their portfolio allocation and remain vigilant about market changes, including economic policies, corporate earnings and global trends.
In the recent market performance, the benchmark Sensex rose 335.06 points or 0.42% to close at 79,724.12 during a special Muhurat trading session on Friday, which marked the beginning of Samvat year 2081. Conversely, the BSE fell benchmark index in October with 4,910.72 points. , or 5.82%, while the Nifty fell 1,605.5 points or 6.22%.
Despite a 10% decline in equity fund inflows ₹With net inflows of Rs 34,419 crore in September, this was the 43rd consecutive month of net inflows into equity-oriented funds, highlighting their continued popularity among investors, as reported by the Association of Mutual Funds in India (AMFI) on 10 October.
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Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to contact certified experts before making investment decisions.
