Benchmark indices climbed historic levels last week after Narendra Modi-led NDA was successful in retaining the majority in 17th Lok Sabha. The S&P BSE Sensex hit 40,000 for the first time while Nifty50 also scaled Mount 12K. We spoke to market experts on their take, on how mutual fund investors should invest –
S Naren, ED & CIO, ICICI Pru Mutual Fund – “With BJP providing a stable government means now you have good 5-year visibility. Benefits of reforms undertaken in the first term will be seen in the next 5 years now.
We are promoting three things in the current market – Debt funds, investments via SIPs and products like balanced advantage funds – which automatically change asset allocation as markets move. Globally markets are expected to remain volatile for the next 3 years.”
Manish Gunwani, CIO Equities, Reliance Mutual Fund
“From 2013 to 2017, there was a massive outperformance seen in the midcap space. While in the next 15months, a reversal was seen. From here, for 2-3 year perspective, returns from large & mid-cap indices are broadly going to be the same and hence, the multi-cap strategy makes more sense as it offers the required flexibility.”