There was pressure in the market even on the last day of the trading week of 08 November. Selling dominated in mid and small cap stocks. In the week ending November 08, Sensex closed with a fall of 0.30 percent and Nifty closed with a fall of 0.64 percent. In such a situation, while talking about the further outlook of the market and multi asset funds. Principal Investment Strategy of ICICI Pru Multi Asset Fund Chintan Haria Said that a lot of ups and downs were seen in the market. There was a big rise in China in September. There has been a huge rise in China after many years. The boom in China market has affected India. Nearly Rs 1 lakh crore has been withdrawn by foreign investors from India. This is the biggest redemption till date. Indian market is getting support from domestic investors. Domestic MFs have become quite big today. India’s growth story is very strong. The coming 5-6 years are expected to be very good. Investors need not worry.
Talking about multi asset fund, he said that multi asset invests in at least 3 asset classes. At least 10% investment in each category is necessary. Invests at least 65% in equities. There is exposure to commodities up to 10-12%. Whereas there is exposure in debt up to 10-12%. REITs invest up to 3-4% in InvITs. In multi asset funds, investments are made in different asset classes through a single fund. Equity has exposure to large, mid and small caps. Equity leads to long-term wealth creation.
Invest in mid-smallcaps for long term
Talking about large and midcap indices, he said that the valuations of mid and small caps were cheaper earlier due to which earlier the share of mid and small caps was higher in the fund. The market scope has expanded significantly in the last 4 years. Now reduced exposure to mid and small caps. The focus is on sectoral flexibility. Investment would be advisable for 3-5 years. Long term investment would be advisable. There is benefit of diversification.
Which sectors to focus on?
Chintan Haria said that exposure in the energy sector has been increased. The focus is on technology sector. According to valuation, allocation is more in technology sector. Focused on new age technology sector. Sectors with expensive valuations were not kept. There is an eye on the balance sheets of companies.
Possibilities are visible in IT sector
Talking about the IT sector, he said that the performance of the sector has been good in the last 4 months. Right now there are possibilities in the IT sector. There is a need to be cautious for 6-12 months. There seems to be comfort in large IT as compared to mid and small IT.
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