Indian equity markets fell to their lowest in three years in March after the Covid-19 lockdown. Since then, they not only recouped losses but also surpassed previous peaks.
Amid such volatility, investors must adopt a long-term strategy and diversify their asset allocation strategy in the Hindu New Year of Samvat 2077, according to Nilesh Shah, managing director of Kotak Mahindra Asset Management. “By being a regular investor, a long-term investor and a good asset allocator, you will be able to achieve optimum returns on your portfolio,” he said on BloombergQuint’s weekly series The Mutual Fund Show.
Kalpen Parekh, president of DSP Mutual Fund, suggested investors build a portfolio by focusing on downside protection with a mix of equity and debt.
“My only advice is to build portfolios which can live through the worst phases. Start by that thought in mind that if the worst were to happen, what will my plan be?” he said. “Will I be able to live through that temporary phase of sharp corrections in the market? Design the portfolio accordingly, don’t design the portfolio for highest returns, design the portfolio for survival.”