Investors must opt for an asset allocation strategy, says Palka Arora Chopra of Master Capital Services
MintGenie, Chopra said that when analysing fund performance, investors should consider not only point-to-point performance but also the fund's rolling returns relative to its benchmark, as well as risk-adjusted performance. 6.5% economic growth is expected in Fiscal year 2024-25 making India one of the fastest-growing economies in the world. The Indian Economy is expected to outgrow China’s economic growth because of the high foreign investments expected in 2024.
Three cuts in interest rates in 2024 by the FED are expected, however economists expect that RBI will not cut interest rates from 6.5% till the end of the 2024 fiscal year. The market is expecting that in the first half of 2024, the pace of economic growth will depend on election outcomes & consumer spending, and in the second half of 2024 will depend on business and investment-related activities. The market is expecting that the ruling government will come back but if the results come opposite the investor's expectation, then we will see a downside in the Indian markets.
Banking, financial services, IT, automobiles, infrastructure, capital goods, realty, and renewables sectors are likely to remain in focus. When investing in shares, you should expect to see ups and downs in the markets in the short term. The volatility of the fund will be determined by its category and market conditions.
A mid-cap fund, for example, will be substantially more volatile than a large-cap fund. When analysing fund performance, investors should consider not only point-to-point performance but also the fund's rolling returns relative to its benchmark, as well as risk-adjusted performance. Indian mutual funds have currently about 7.44 crore SIP accounts through which investors
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