Intermittent bouts of volatility not necessarily a bad sign: Axis AMC CIO

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₹2.6 trillion in assets. In fact, he believes periodic corrections are healthy as they eliminate excesses, and create fresh investment opportunities. Moreover, Gupta noted that investors seem to favor equities, aiming to allocate a greater portion of their portfolios to stocks.

Edited excerpts: Market flows seem to be stabilizing, thanks in part to regulatory measures from both the Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) to prevent market excesses. While it's tempting for markets to surge daily, such rapid gains are unsustainable in the long term. Over the last two years, investors have maintained a consistent approach on the equity side.

Most of the investment flows we receive are through systematic investment plans (SIPs). Rather than making lump sum investments before events or timing the market, people are opting for systematic asset allocation to equities, avoiding making decisions based solely on market levels. It seems they're leaning towards equities, aiming for a larger portion of their asset allocation to shift in that direction.

Elections in India are keenly anticipated by the markets, however, the primary interest lies in policy continuity and the set of reforms brought in by the government. In the lead up to the elections, it is common to see a softness in government spending or decision making at a policy level. However, this slowdown is typically short lived due to the enforcement of the code of conduct, and the impact is temporary.