Samvat webinar: Experts back balanced portfolios as Diwali opens new investing year

As the new Samvat begins with Diwali, market experts at a Business Standard Hindi webinar said India's long-term growth story still offers openings in mutual funds, equities and gold, but advised investors to keep portfolios balanced rather than chase any single trade.

The three-session event, titled 'New Samvat, New Beginning: An Opportunity for Investors to Reset Their Portfolios', acknowledged the backdrop of global uncertainty, geopolitical tensions and choppy markets. Even so, speakers pointed to potential in power, artificial intelligence, manufacturing, renewable energy, financial services and consumption.

The mutual fund session put the spotlight on SIPs. Venkat N Chalasani, chief executive of the Association of Mutual Funds in India (Amfi), said systematic investment plans have nudged investors towards regular, disciplined habits. When markets slip, he said, investors pick up more units at lower prices. He also noted that about 65 per cent of the population is under 35, a demographic that could support consumption, and that growth has held around 7.2-7.3 per cent despite multiple challenges.

On earnings, Rahul Singh of Tata Mutual Fund said large companies are showing signs of improvement after a stretch of weak profit growth, and that a pickup could help the market. Jitendra Sriram of Baroda BNP Paribas Mutual Fund said steady domestic participation has kept liquidity healthy and partly offset foreign selling, while small-cap earnings have recovered well in recent years.

In the equities session, Harendra Kumar of Elara Securities described the three-year outlook as positive and said large caps could deliver roughly 12 per cent annual returns over the long run. If foreign investors return, he said, big private banks and stocks in autos, consumer discretionary, internet and energy could benefit. He suggested large and mid caps together could make up around 75-80 per cent of an equity portfolio. Jignesh Desai of Centrum Broking said large caps look attractive on valuations.

The takeaway for the new year: stay diversified across equities, gold and debt, watch large-company earnings and global cues, and look carefully at small caps and defence stocks before diving in. Investors should also understand the risks of newer products such as specialised investment funds (SIFs) before committing money.

Read the original report: New Samvat brings opportunities in mutual funds, equities and gold: Experts.

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