ETMarkets Smart Talk: Sensex@80K! Sahil Kapoor recommends multi-asset allocation strategy for new investors
“Allocate new money to a multi-asset allocation strategy or an equity savings fund with lower equity allocations,” says Sahil Kapoor, Head of Products & Market Strategist, DSP Mutual Fund.
In an interview with ETMarkets, Kapoor said: “Retail investors should prioritize building a well-rounded portfolio that includes both equity and debt, aligning their investments with their financial goals rather than chasing short-term market trends” Edited excerpts:
The market touched record highs post-budget, followed by a slight dip triggered by global cues. However, the Indian market managed to bounce back, which seems to be due to core economic strength. What are your views on this, especially considering the recent Hindenburg drama?
Sahil Kapoor: Over the last two to three months, the rate of ascent in the market has been slowing down. The market is now spending more time reaching higher highs than it was earlier, indicating a shift in momentum towards consolidation.
The market is still driven by the anticipation of stronger earnings growth, though the factors contributing to this growth are evolving. It's important to note that economic growth is not the sole reason for the market's rise. In fact, economic growth is leveling off.
We were accelerating in the previous two financial years, but now we are seeing growth stabilizing and, in some areas, slightly declining. Therefore, the market's rise is a mix of earnings expectations and runaway investor expectations.
You closely track economic fundamentals, and we've seen
