Next 1-2 Quarters' Earnings Key for FIIs' View of India

It has been a trying phase for the Indian equity markets as they have grappled with a host of global and domestic developments. Akash Hariani, joint managing director at Motilal Oswal Private Wealth, tells Puneet Wadhwa in an email interview that times like these re-emphasize the need for having proper asset allocation and managing it within stated pre-defined guidelines/limits. Excerpts:

- Akash Hariani Joint MD, Motilal Oswal Private Wealth

How are your high-networth and ultra-high-networth clients reacting to the downturn in the equity markets?

The recent correction has made clients look again at their asset allocation and make adjustments. Risk management has again come into the picture after chasing returns for quite some time. Forgotten asset classes like fixed income are being talked about, along with hybrid funds and offshore funds exposure from a diversification perspective. Clients have turned cautious in the past two months, after buying the correction from the October-December 2024 period.

What has been your investment strategy since the market fall started in September 2024?

We have been cautious on the markets for the past six to eight months, given the evolving geopolitics and concerns around valuations. Our approach has also been more conservative towards equity investment. We have preferred hybrid and largecap funds/strategies and staggered deployment in flexicap/mid and smallcap strategies.