Nifty 50 up 18% year-to-date, gains 9% in last two months; what should be your equity strategy? Here's what experts say

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General Elections 2024. This reinforces the likelihood of policy continuity and a favourable trajectory. The critical decision now lies in determining where to place one's bets—whether on large caps, mid caps, or small caps.

Also Read: Budget 2024 may have some populist measures; growth to moderate in 2024, says Gautam Duggad of Motilal Oswal The market sentiment is positive and experts believe the bull run will continue although intermittent profit booking cannot be ruled out. Equity remains an attractive asset class but experts highlight multi-asset strategy could be the best strategy for investors. Vinod Nair, Head of Research at Geojit Financial Services recommends a multi-asset approach for investments at this juncture considering the rich valuation of equities.

"Our strategy involves a multi-asset approach for investment. Given the high valuation of equities in a slowing global economy, offering a 5 per cent yield in line with bond yields, we see merit in diversifying. Debt instruments can provide a decent return with lower risk compared to risky equities," said Nair.

Nair, however, is positive about India as its economic growth is constantly upgraded, resulting in a decoupling opportunity. Nair favours large-cap stocks over mid and small-caps which are currently valued above average. "We feel that large caps are better equipped for the long haul because of exuberant earnings growth, while recent stock performance has been relatively subdued due to muted FII inflows," Nair said.