Investing Options In The Times Of Uncertainty

ICICI Prudential Mutual Fund Over the last one year, several global factors such as geo-political unrest, spiralling inflation across developed markets leading to steep rate hikes by global central banks are all factors which have weighed in on equity market sentiment from time-to-time.

- S Naren, ED & CIO

Amidst this, inarguably, the Indian economy is better placed fundamentally and is likely to continue to grow on a strong footing in the long-term. However, in the short-term, it might be affected by global events. In the medium to long term, our outlook on equities remains positive.

Given this mixed backdrop, investing in current market condition can be challenging for a retail investor. However, there are some basic principles one should be mindful of when investing during such volatile times. First, start with asset allocation and stick to the allocation decided. If you are overweight equities, reduce the allocation and if you are underweight equities remember to build exposure in a staggered manner through SIP.

In case if you are unsure how to go about asset allocation, opt for asset allocation schemes which can do the allocation to various asset classes for you. Here, if you wish to build exposure to equity and debt, opt for dynamically managed asset allocation scheme. And in case if you are looking for allocation to equity, debt and gold, you can consider a multi-asset category scheme. In either of the funds, basis the changing market condition, the fund manager will manage the allocation in a manner that the investor can capitalise on the investment opportunities present across these asset classes.