Investor Maturity Shines Through in Weak Markets, Says UTI AMC's V Srivatsa
Consistent inflows in weak markets reflects investor maturity, says V Srivatsa, UTI AMC
The Economic TimesImage: The Economic Times
Despite significant foreign selling, domestic mutual fund inflows remain robust, indicating a shift in investor behavior towards maturity. V Srivatsa from UTI Asset Management Company highlights that investors are now more disciplined, maintaining investments even during market downturns, which helps stabilize volatility.
- 01Domestic mutual fund inflows remain strong despite foreign investor selling.
- 02Investors are showing greater maturity by maintaining investments during market declines.
- 03Midcap and smallcap stocks are trading at a premium, contrary to historical trends.
- 04A balanced investment strategy is recommended, with 50% in equities and 50% in hybrid categories.
- 05Crude oil prices pose ongoing risks, potentially affecting corporate earnings.
Advertisement
In-Article Ad
V Srivatsa (UTI Asset Management Company) noted that domestic mutual fund inflows have remained strong, even amid heavy foreign institutional investor selling. This trend reflects a significant shift in investor behavior, where individuals are now more disciplined and willing to invest during market downturns. Srivatsa emphasized that this maturity helps stabilize market volatility, which is crucial given the current global uncertainties and rising crude oil prices. He observed that while midcap and smallcap stocks are trading at a premium compared to largecaps, a balanced investment approach is advisable. He recommends allocating around 50% of a portfolio to equities, focusing on largecaps and flexicap funds, while the other 50% should be in hybrid and asset allocation categories. Additionally, he suggests a 5% exposure to gold as a hedge against uncertainty. Despite potential risks from fluctuating crude oil prices, Srivatsa remains optimistic about future earnings growth assuming stabilization in oil prices.
Advertisement
In-Article Ad
The shift in investor behavior may lead to increased market stability, benefiting long-term investors and reducing volatility in mutual funds.
Advertisement
In-Article Ad
Reader Poll
Do you believe that retail investors are becoming more disciplined in their investment strategies?
Connecting to poll...
Read the original article
Visit the source for the complete story.