“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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.