“Within equity, investors should maintain a calibrated approach. Large-cap funds should be kept at 60 per cent of the overall portfolio, with the remaining exposure in mid- and small-cap funds. Here, too, small-cap exposure should be kept lowest,” said Amol Joshi, founder of Plan Rupee Investment Services.
Experts say market volatility will likely persist as the economic outlook remains uncertain. The India Vix, a volatility gauge, has seen a seven-fold spike in the current calendar year.
Experts say investors should also brace for sharp corrections as corporate earnings are unlikely to improve in the near term.
“June seems to be a washout quarter on a YoY (year-on-year) basis. The September quarter is likely to be weak as well. In December, we could see flat to slightly positive earnings performance. But if lockdown is tightened again, recovery would also get pushed,” said Deepak Jasani, head of retail research at HDFC Securities.
have seen heavy redemptions in the current year — they stood at Rs 62,413 crore from such schemes (data available till May) on a YTD basis.
Rising redemptions can also be gauged from the slowdown in the flows coming through systematic investment plans (SIPs). Since peaking in March, the SIP book has contracted 6 per cent. In May, contributions to MFs through SIPs stood at Rs 8,123 crore.