9 Jan 2023

A lot can change in the new year. But certain things remain constant – and a disciplined approach to investing should be one of them.

As we step into 2023, let’s discuss what the year could pan out like and what your asset allocation could be.   

Equity markets are currently discounting an accelerated earnings growth journey for corporate India. Hence, being careful with selecting stocks will be vital if one is looking to generate returns as they did before.

Considering that India’s valuations are currently above its historical average, investors must consider the year as a buy-on-dips market, and continue to focus on asset allocation between equity, debt, gold and real estate.

 

 

This can help you navigate the choppy global waters where your Indian boat remains steady.

Our recommendation to investors is to keep some dry powder to buy equities on dips while having a marginal overweight stance for large-cap companies and buying small- and mid-cap companies at opportune times in case of a correction.

Investors who have a relatively higher risk appetite can also consider investing in the infrastructure and manufacturing theme.

Debt funds should also be a part of your portfolio, as they could help anchor your portfolio in the choppy waters of 2023.

Our view for precious metals is that we are bullish on silver and gold over the medium term. Our call on gold in 2022 has rewarded investors, and we think that a Gold Fund of Fund or an ETF on Gold and Silver can be a very convenient way to invest over the physical holding of both these assets. 

With this, we wish you a very happy and healthy 2023. Happy investing!

 


 

This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before making any investment-related decisions and alone shall be responsible for any decision taken.

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© Kotak Mutual Fund.2022
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
© Kotak Mutual Fund.2022
Mutual fund investments are subject to market risks, read all scheme related documents carefully.