Mutual fund investment: Diwali is considered an auspicious occasion to start a new investment. It is believed that such investments bring prosperity and sound financial condition. However, for a mutual fund investor, Diwali 2023 comes with confusion as Indian stock market is near record high and equity mutual fund investors are concerned about worsening geo-political tensions in the Middle East. However, fund managers believe that one can look at large-caps and hybrid schemes.
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Mutual fund investment tips
On how to generate alpha return from equity mutual fund investments, S Naren, ED & CIO at ICICI Prudential AMC said, “Markets have been volatile off late owing to worsening geo-political tension, rising US yield, persistent inflation, currency devaluation to name a few factors. Given this scenario, this Diwali, investors can consider investing in hybrid schemes and large caps schemes. Within hybrid one can consider categories such as the multi-asset, balanced advantage, equity savings or aggressive hybrid.”
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The ICICI Prudential AMC expert further added that from a valuation perspective, large caps are comparatively better than mid and small caps. From portfolio diersification perspective, an allocation to gold can serve as a hedge against inflation and help mitigate the risks associated with traditional asset classes.
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Advising mutual fund investors to look at large-cap equity mutual funds on Diwali 2023, Mohit Gang, CEO & Co-founder MoneyFront — a subsidiary of Niyogin Fintech said, “We are firmly in the camp of Large Caps this Diwali. Almost 60% of the companies in the Nifty Top 100 have delivered low single digit returns for the last 1 year. It’s time they will catch up relatively. Also mid and small caps are overstretched on valuations in a few pockets.”
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Asked about the favoured pics in mutual fund schemes, Mohit Gang said, “Our favoured pick for this Diwali is Nifty 50 Index fund. Investors can choose Bandhan Nifty 50 Index or Pru ICICI Nifty 50 Index fund in the large cap space.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Updated: 12 Nov 2023, 07:05 AM IST
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