New Delhi, Aug 8 (IANS) Analysts say this is not the time to go overboard on equities given the valuations.
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
