Your Mutual Fund Investments In The Modi 3.0 Era

One should continue investing through SIPs and also timely rebalance portfolios according to the asset allocation plan in consultation with one's financial advisor

- Anagh Pal

IN RECENT times, the markets have remained choppy. We have seen a runaway rally over the last three to four years and the equity markets are currently trading at a premium. The good times, as we have been experiencing, may not last. NSE 500 companies experienced earnings deceleration in Q1 FY25, with 300 of 500 companies reporting a 6 per cent quarter-on-quarter decline in earnings while showing a 3 per cent year-on-year growth primarily due to a 21 per cent year-on-year growth in banking and financial services (BFSI) companies. “Excluding BFSI, 229 companies reported a 7 per cent year-on-year and 10 per cent quarter-on-quarter decline in earnings. In such a scenario, capital is likely to flow towards companies with better earnings growth, making stock-picking crucial, similar to the 2009-2013 period,” says Manish Bhandari, CEO and Portfolio Manager, Vallum Capital Advisors, a Securities and Exchange Board of India (SEBI) registered investment advisor (RIA). In such a scenario, what should be your mutual funds strategy? We take a look.

The Budget Driver

The budget this time, highlights three themes. And these should guide your mutual fund investment strategy going ahead.