Given the valuations versus macro tradeoff, we would recommend being invested but in line with your asset allocation, Bandhan Mutual Fund said in a report.
Aggressive Hybrid, Balanced Advantage, Flexicap, and Largecap Funds remain a preferred strategy for the first-time or conservative investor, it said.
As most global companies have adopted a ‘China + 1’ strategy to diversify risk, we recommend investors add a ‘Value’ focused strategy as a tool to diversify or broaden core equity allocation.
Global economy seems to be headed for a soft landing, but the impact of monetary tightening still warrants caution.
Prefer domestic plays to global — however with valuations/election risk this needs to be calibrated, the report said.
Energy transition globally is a theme which may produce some healthy optionality in utilities, capital goods, cables, etc.
The report said that sectors exposed to rural/low-end consumption look attractive due to prospects of election spending and waning of Covid/inflation-related balance sheet shocks.
Valuation of some quality growth stocks is reasonable now. As nominal growth slows down niche small caps may provide healthy returns, the report said.
–IANS
san/dpb
