Indian benchmark equity indices have seen a one-way rise since the beginning of August, which has helped them scale their record highs and become among the best-performing markets in the world for this period. However, stock valuation appears to have become rich, with Nifty now quoting at upwards of 20 times two-year forward earnings. In traditional portfolios where investors use the asset allocation approach, the recent rally has resulted in a significant increase in equity exposure.
ETMarkets’ Chiranjivi Chakraborty caught up with Mr. Amit Ganatra, Senior Fund Manager at HDFC Asset Management, to understand if investors should trim their equity exposure, what are the prospects for debt investment and why a multi-asset approach could be worth a relook.
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Q. At a time when equity valuations appear to be fully pricing in most positives, does it make more sense to trim allocation to this asset class?
Q. With interest rates having bottomed out, how should investors look at the debt portion of their portfolio? Where are the opportunities in this market?
Q. Inflation has been a major global talking point. How should investors protect their portfolios in the event of a flare up in inflation in the coming years, especially, when gold is underperforming severely?
Q. Multi-asset funds haven’t had a solid year or two when compared to other investing approaches, why should investors shift to this approach now?
Thank you Chiranjivi and Mr. Ganatra for a very intriguing conversation.
That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts twice every day. Stay safe and Happy Weekend!
