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Time of India
26-05-2025
- Business
- Time of India
Nifty still below peak, but why are these mutual funds at record-high NAVs?
Despite benchmark indices Nifty 50 and BSE Sensex falling nearly 5% from their 52-week highs, several hybrid mutual funds have hit their own 52-week high NAVs. Mutual fund experts attribute this outperformance to two key factors: diversification across multiple asset classes and the relatively lower volatility of hybrid funds. 'The funds in the category of balanced advantage, dynamic asset, equity savings, and aggressive hybrid would have part of their portfolio in debt instruments, which provide stable returns and cushion the downside in a market downturn. When markets become volatile, as we are currently witnessing due to geopolitical and global financial headwinds, investors start to favour these categories as they are relatively less volatile than the Nifty and Sensex,' said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors , a wealth management firm in Mumbai. Also Read | Explained: Why Alpha and Beta matter in mutual fund investing Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Senior : classement des meilleures mutuelles 2025 (dès 11,19€/mois) Meilleurtaux Undo 'This brings into sharp focus the importance of active stock-picking instead of just relying on the index for investment processes,' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. An analysis by ETMutualFunds showed that many funds from arbitrage, aggressive hybrid, equity savings, balanced advantage, and dynamic asset allocation fund categories have recently hit their 52-week high NAVs, and some funds are behind by less than 1% from their 52-week high NAV Live Events A further analysis of these categories showed that there were around 66 schemes of which only one was large cap fund which has been in the market for nearly 1.29 years so it hit its 52-week high level. Aditya Birla SL Balanced Advantage Fund, which was at its 52-week high level on May 16 with a NAV of Rs 105.3300, is now trading at Rs 105.1500 down by 0.17% from the 52-week high NAV. Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life AMC, said that asset allocation is about having a disciplined framework to book profits when everything seems to be going great for an asset class and to increase allocation when the margin of safety improves. 'ABSL BAF has navigated the last 6 months with agility and discipline- from 38% in mid-October 2024 to directional equity to around 70% by mid-March 2025, a period where pessimism was on the rise and conversely margin of safety improved. It is this dynamic asset allocation that helps protect the downside while participating in the eventual upside of markets,' he added. The funds that have reached their 52-week high level were on May 15, May 16, May 19, May 21, and May 23. Analysis of daily data of the benchmark indices showed that Nifty and Sensex went up on May 15, May 21, and May 23, whereas they dropped marginally on May 16. Some funds reached their 52-week high level when Nifty and Sensex hit their 52-week high level. Also Read | International mutual funds rally up to 12% in one month. Time to go global? If you're considering shifting your investments into these high-performing funds, Minocha cautions against chasing trends, noting that today's top performers could underperform tomorrow. He further recommends that investors should focus on those assets which are most appropriate for allocation given their objectives, risk appetites, and investment horizons and one should always go with an investment approach based on a goal-oriented perspective over the long term, which is far more beneficial than reacting to short-term returns. To this Dhawan adds in the current market scenario, where there are near to medium-term uncertainties regarding global trade policies and geopolitical tensions, volatility and the probability of a downturn in the equity market rise and these funds can be ideal for such an environment, and they are often recommended to investors who would have a moderate to low risk tolerance level. 'The primary objective of these categories is to provide a stable return by combining equity and debt together in different proportions. Arbitrage funds can be used for short-term investment purposes for high liquidity and emergency cash requirements. They can also be used to park money until there is a better investment opportunity to invest elsewhere,' he added. Investing in mutual funds near their 52-week highs carries risks such as limited upside potential, overvaluation, and increased chances of a market correction. These funds may reflect temporary performance driven by recent trends, leading to recency bias and unrealistic expectations. Commenting on the risk associated with investing in mutual funds that are near to their 52-week high level that one should be aware of, Dhawan mentions that investing in mutual funds that are near their 52-week high can present certain risks such as increased valuations and higher potential correction, active management risk, and market risk. Also Read | 10 equity mutual funds with NAVs above Rs 1,000 offer CAGR up to 24% since their inception 'After a sharp outperformance, there is always a probability of a market correction or a 'profit-booking' event, which can lead to drawdown or consolidation in the equity market. Since many of these funds have some exposure to equity, they could also correct. Additionally, past performance doesn't guarantee future results, and good fund managers can navigate through different market conditions, but their strategy, which drove the fund to a 52-week high, may not work going ahead,' he added. And lastly he adds that regardless of whether a fund is at its 52-week high or low, it's always subject to general market risk and factors like economic conditions, interest rate changes, geopolitical tensions, and overall market sentiment can impact the fund's performance. On the other hand, Minocha is of the opinion that 52-week highs should not be considered red flags to delay entry into a fund and as markets operate in cycles, these dynamics change with strategy, consistency, or one's financial goals. Investors need to understand the philosophy and the investment approach of a particular fund and see if it is aligned with their own thought process and then select investment categories and fund houses. One should always remember that equity funds suit long-term investors, while debt or hybrid funds are the alternatives for the shorter end, said Minocha. One should always choose a scheme based on risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
15-05-2025
- Business
- Time of India
Gold ETFs down up to 14% from peak. Is the best of yellow metal bull run over?
After a strong rally that saw gold prices hitting record highs earlier this year, Gold Exchange Traded Funds ( ETFs ) have corrected up to 14% from their recent peaks, prompting investors to question whether the bull run in the yellow metal is over or not. An analysis of data showed that SBI Gold ETF corrected the most by around 14% from its 52-week high level, followed by 360 One Gold ETF and Tata Gold ETF, which are down by around 12% each from their 52-week high level. Also Read | MF Tracker: Can this smallcap mutual fund add value to your portfolio? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. 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View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Around seven gold-based ETFs were down by 7% from their peak which includes LIC MF Gold ETF, Groww Gold ETF, Mirae Asset Gold ETF, HDFC Gold ETF , and Edelweiss Gold ETF. Kotak Gold ETF and DSP Gold ETF were down by 6% each from their peak, and lastly, Zerodha Gold ETF dropped by 5% from its peak. Live Events An expert believes that during uncertain periods, gold performs well as investors consider it a safe haven, and the past five years have seen a lot of volatility, starting with the pandemic and then, the geopolitical tensions concerning Russia-Ukraine, Israel-Hamas, and now India and Pakistan across the border have firmly pushed prices upward. 'They would usually be normalised upon the diffusion of those fears and the stabilisation of global sentiment. Prices are now dipping simply owing to this releasing-off effect after a strong rally, which for some time had even outshined long-term equity returns.' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. According to a report by ET, on Wednesday, gold and silver settled on a weak note in the domestic and international markets. Gold and silver prices were unable to hold their previous sessions gain and plunged again amid easing safe-haven demand due to US-China trade negotiations and major risk aversion in the global financial markets. The U.S. and China trade negotiations changed bullion markets sentiments and traders and investors are unwinding their long positions and booking profits, the report further added. In the last nine months, gold ETFs have offered upto 32.37% return with UTI Gold ETF being the topper, followed by Invesco India Gold ETF which has offered 31.68% return. Nippon India ETF Gold BeES, the largest gold ETF, offered 31.24% return. Edelweiss Gold ETF gave the lowest return of around 31.08% return. Also Read | Mutual funds use inflows to stuff another Rs 17,300 crore in their cash bag These ETFs gave upto 28.69% return in the last one year with UTI Gold ETF being the topper. LIC MF Gold ETF gave the lowest return of around 27.94% in the last one year. The expert firmly mentions that the recent dip doesn't mean the rally has necessarily completely ended-the gold remains topical as a long-term hedge and it is one investment that should be in a diversified portfolio rather than a core growth asset. 'One option is the ETFs, but investors can also take the flexible route like multi-asset funds-that adjust allocational emphasis based on market perception. Overall it can constitute about 8 to 10% of the total portfolio,' Minocha added. Gold ETFs are exchange-traded funds that track the price of physical gold. Each unit of a Gold ETF is backed by a specific quantity of gold, usually equivalent to one gram. They are listed on stock exchanges, and you need a demat and trading account to buy and sell them. If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
12-05-2025
- Business
- Economic Times
India-Pakistan Tensions: How should mutual fund investors respond to navigate geopolitical risk?
Amidst India-Pakistan geopolitical tensions, mutual fund experts advise investors to remain calm and continue SIPs for rupee cost averaging, avoiding lumpsum investments. With rising geopolitical tensions between India and Pakistan, mutual fund experts are urging investors to stay calm, avoid making impulsive decisions and should continue with their ongoing SIPs as they are structured precisely to navigate market volatility by averaging out purchase costs over time and avoid lumpsum investments.'Mutual fund investors should continue to invest through SIP. They should never be paused during geopolitical uncertainty as it is good for rupee cost averaging. Lumpsums should be avoided. There will be opportunities for it in future, if the situation escalates further,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. Also Read | India-Pakistan conflict: How should mutual fund investors deal with geopolitical threats? Another expert believes that uncertainty often triggers fear-driven reactions, especially in the financial markets, where volatility can spike and sentiment can shift rapidly and during periods of heightened geopolitical tension, it is quite natural for investors to feel unsettled. Adhil Shetty, CEO of recommends that when it comes to mutual fund investments, especially Systematic Investment Plans (SIPs), it is advisable not to halt your contributions as SIPs are structured precisely to navigate market volatility by averaging out purchase costs over time and pausing them due to temporary uncertainty could actually mean missing out on opportunities to buy units at lower prices, potentially weakening long-term returns. He further adds that if you have a substantial sum to invest, consider deploying it through a Systematic Transfer Plan (STP) into equity funds over several months as this staggered deployment cushions your investment from short-term market shocks and aligns better with prudent risk management during volatile times. Many market experts believe that gold is considered a hedge against inflation and with global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market the other hand, international funds cater to different broad international markets, commodities, foreign indices, among others and to sum it up, the performance of the scheme will depend on under which geography your money is invested. That means you should pay extra attention to your investments in international funds. Pay extra attention to which geography or indices you are investing important thing to note here is that whether gold and international funds act as a hedge in times of geopolitical instability and if yes, what allocation one should have in their portfolio at this particular time? Both the experts recommend up to 10% of allocation in gold either through gold ETFs, sovereign gold bonds or multi asset funds. Shetty of Bankbazaar mentions that both gold and international mutual funds can serve as hedges during periods of geopolitical stress and gold, in particular, has long been regarded as a 'safe haven' asset, and recent trends have reinforced its role as a shield during uncertainty therefore, allocating around 5% to 10% of your investment portfolio to gold, either through gold ETFs or sovereign gold bonds, can offer diversifications when equity markets are under pressure. Similarly, for international mutual funds, he mentions that these funds provide diversification, reducing your portfolio's dependence on domestic markets therefore with equities facing headwinds due to regional tensions, exposure to developed markets can lend resilience to your investments and a balanced allocation to international funds, typically around 10% to 15%, depending on your risk appetite and goals, can be considered. To this Minocha adds that though gold is a good hedge whenever there is political stability but it has run up significantly over the past few months and the exposure in gold can be taken through multi asset funds. 'Overall it can constitute about 8 to 10% of the total portfolio. Unfortunately, the window for international funds investing in mutual funds is still not available,' Minocha adds. Also Read | Mutual fund SIP stoppage ratio shoots up to nearly 300% in April; fewer takers amid market volatility Investment in equity mutual funds is majorly done with a long-term financial goal. But with short term uncertainty due to conflicts the important thing to take care of is not derailing your long-term financial goals, is what experts believe and additionally if your goals are five to ten years away or more, temporary market corrections are unlikely to cause lasting advises that investments for long-term financial goals should continue through diversified equity funds and short-term conflicts like these happen many times over a long-term investing journey therefore investors should not get other expert recommends that it's wise to revisit your asset allocation and ensure it remains appropriate for your current stage of life and risk tolerance and a diversified portfolio help you stay on course and additionally regular portfolio reviews and rebalancing can ensure your investment plan stays aligned with your long-term objectives, even as short-term conditions are many first-time investors who are willing to allocate in the categories which offer high returns, have low or high risk, and offer tax benefits. Additionally there are existing investors who are willing to start new investments but are confused whether to postpone their fresh investments or move further to do the this both the experts recommend that rather than postponing investments, one should focus on building a disciplined plan, markets will always have their share of uncertainties, but with a good strategy in place, you can overcome them advises that uncertain times shouldn't necessarily deter new investments, but they do call for a thoughtful and strategic approach and for existing investors, it's advisable to stay invested and avoid knee-jerk reactions and if your current funds are well-chosen and aligned with your goals, continuing with your SIPs and reviewing your portfolio periodically should suffice. Also Read | Gold ETF record outflow for second consecutive month amid surge in prices. Is it profit booking? For new investors, the CEO of Bankbazaar recommends that starting with SIPs in diversified equity mutual funds is a prudent choice as this approach ensures you enter the market gradually and avoid the risk of poor market timing plus it's also advisable for beginners to steer clear of volatile a similar opinion, Minocha adds that long term investments should be done in equity based diversified investments through SIPs and STPs, short and medium term investments should be done through debt and hybrid funds like arbitrage funds and investors should continue to invest based on their goals, time horizon and risk appetite. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Time of India
12-05-2025
- Business
- Time of India
India-Pakistan Tensions: How should mutual fund investors respond to navigate geopolitical risk?
With rising geopolitical tensions between India and Pakistan, mutual fund experts are urging investors to stay calm, avoid making impulsive decisions and should continue with their ongoing SIPs as they are structured precisely to navigate market volatility by averaging out purchase costs over time and avoid lumpsum investments. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations 'Mutual fund investors should continue to invest through SIP. They should never be paused during geopolitical uncertainty as it is good for rupee cost averaging. Lumpsums should be avoided. There will be opportunities for it in future, if the situation escalates further,' said Rajesh Minocha , a Certified Financial Planner (CFP), Founder of Financial Radiance . Also Read | India-Pakistan conflict: How should mutual fund investors deal with geopolitical threats? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Another expert believes that uncertainty often triggers fear-driven reactions, especially in the financial markets, where volatility can spike and sentiment can shift rapidly and during periods of heightened geopolitical tension , it is quite natural for investors to feel unsettled. Adhil Shetty, CEO of recommends that when it comes to mutual fund investments, especially Systematic Investment Plans (SIPs), it is advisable not to halt your contributions as SIPs are structured precisely to navigate market volatility by averaging out purchase costs over time and pausing them due to temporary uncertainty could actually mean missing out on opportunities to buy units at lower prices, potentially weakening long-term returns. Live Events He further adds that if you have a substantial sum to invest, consider deploying it through a Systematic Transfer Plan (STP) into equity funds over several months as this staggered deployment cushions your investment from short-term market shocks and aligns better with prudent risk management during volatile times. Many market experts believe that gold is considered a hedge against inflation and with global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market instability. On the other hand, international funds cater to different broad international markets, commodities, foreign indices, among others and to sum it up, the performance of the scheme will depend on under which geography your money is invested. That means you should pay extra attention to your investments in international funds. Pay extra attention to which geography or indices you are investing in. The important thing to note here is that whether gold and international funds act as a hedge in times of geopolitical instability and if yes, what allocation one should have in their portfolio at this particular time? Both the experts recommend up to 10% of allocation in gold either through gold ETFs , sovereign gold bonds or multi asset funds. Shetty of Bankbazaar mentions that both gold and international mutual funds can serve as hedges during periods of geopolitical stress and gold, in particular, has long been regarded as a 'safe haven' asset, and recent trends have reinforced its role as a shield during uncertainty therefore, allocating around 5% to 10% of your investment portfolio to gold, either through gold ETFs or sovereign gold bonds, can offer diversifications when equity markets are under pressure. Similarly, for international mutual funds, he mentions that these funds provide diversification , reducing your portfolio's dependence on domestic markets therefore with equities facing headwinds due to regional tensions, exposure to developed markets can lend resilience to your investments and a balanced allocation to international funds, typically around 10% to 15%, depending on your risk appetite and goals, can be considered. To this Minocha adds that though gold is a good hedge whenever there is political stability but it has run up significantly over the past few months and the exposure in gold can be taken through multi asset funds. 'Overall it can constitute about 8 to 10% of the total portfolio. Unfortunately, the window for international funds investing in mutual funds is still not available,' Minocha adds. Also Read | Mutual fund SIP stoppage ratio shoots up to nearly 300% in April; fewer takers amid market volatility Investment in equity mutual funds is majorly done with a long-term financial goal. But with short term uncertainty due to conflicts the important thing to take care of is not derailing your long-term financial goals, is what experts believe and additionally if your goals are five to ten years away or more, temporary market corrections are unlikely to cause lasting damage. Minocha advises that investments for long-term financial goals should continue through diversified equity funds and short-term conflicts like these happen many times over a long-term investing journey therefore investors should not get perturbed. The other expert recommends that it's wise to revisit your asset allocation and ensure it remains appropriate for your current stage of life and risk tolerance and a diversified portfolio help you stay on course and additionally regular portfolio reviews and rebalancing can ensure your investment plan stays aligned with your long-term objectives, even as short-term conditions fluctuate. There are many first-time investors who are willing to allocate in the categories which offer high returns, have low or high risk, and offer tax benefits. Additionally there are existing investors who are willing to start new investments but are confused whether to postpone their fresh investments or move further to do the investments. To this both the experts recommend that rather than postponing investments, one should focus on building a disciplined plan, markets will always have their share of uncertainties, but with a good strategy in place, you can overcome them effectively. Shetty advises that uncertain times shouldn't necessarily deter new investments, but they do call for a thoughtful and strategic approach and for existing investors, it's advisable to stay invested and avoid knee-jerk reactions and if your current funds are well-chosen and aligned with your goals, continuing with your SIPs and reviewing your portfolio periodically should suffice. Also Read | Gold ETF record outflow for second consecutive month amid surge in prices. Is it profit booking? For new investors, the CEO of Bankbazaar recommends that starting with SIPs in diversified equity mutual funds is a prudent choice as this approach ensures you enter the market gradually and avoid the risk of poor market timing plus it's also advisable for beginners to steer clear of volatile themes. With a similar opinion, Minocha adds that long term investments should be done in equity based diversified investments through SIPs and STPs, short and medium term investments should be done through debt and hybrid funds like arbitrage funds and investors should continue to invest based on their goals, time horizon and risk appetite. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Economic Times
06-05-2025
- Business
- Economic Times
Nifty up by 10% from April low. What should mutual fund investors do?
Despite Nifty 50's recent gains, experts advise caution on lumpsum investments due to expected volatility from foreign and geopolitical factors, recommending SIPs for long-term investors. With the benchmark index - Nifty 50 up by nearly 10% from April's low level and reaching a level of 24,461 on Monday, the market experts recommend that the volatility this year is expected to continue, especially on the back of foreign and geopolitical developments and therefore there is a greater need for caution on lumpsum equity investments whereas SIPs continue to be the best option for the long-term investor as discipline and rupee-cost averaging is ensured through them.'Those with funds for a lumpsum investment can consider putting in staggered allocations through STPs into equities. It is wise to make any investment decision in accordance with the goals, risk appetite, and timeline of the individual. For those who missed the recent rally, the time is ripe for entry, albeit first gradually and strategically, and without trying to time the market,' recommended Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. Also Read | A SIP of Rs 5,000 helps to build a corpus of Rs 1 crore. Consistency beats everything The index was at the level of 22,161.6 on April 7, the lowest one in the current financial year so far. In the last three months, the index has gone up by 2.55% whereas in the six months it has gained 1.46%. Nifty50 gained 8.32% in the last one year and went down by one and a half touched its 52-week high level on September 27, 2024 of 26,277 and is currently down by nearly 7% from its 52-week high level. As the benchmark continues to gain momentum post April's low, the expert believes that the recent rally, while powerful in its own right, is so far unable to breach all-time highs set last September and investors must not consider decisions based on short-term movements and, instead, base their investments on long-term financial further recommends that long-term-oriented investors must continue to stay put, as timing the entry and exit is never fruitful in most cases, probably less so now, given the uncertainties on the geopolitical front, which may bring about bouts of volatility. 'Money required for the near term should not be exposed to equities but instead could be invested in debt or hybrid funds. This rally may give way to consolidation, but there should not be any profit-booking by goal-based investors,' he looked at the performance of equity mutual fund categories since the April low and found that three categories gained in double-digits in the mentioned period. Since April 7, the Auto sector based funds offered 11.17% average return, international funds gave 10.52% and tech funds have given 10.44% average return in the same period. Mid cap funds offered an average return of 8.94% in the same period, followed by large & mid cap funds which gave an average return of 8.89% in the said time period. Pharma based funds gave the lowest return of 6.92% in the similar time on the above-mentioned data, the expert mentioned that the rally so far has largely been concentrated, specifically led by autos, international funds, and tech sectors as they enjoyed strong earnings visibility and had global tailwinds in their favor. In contrast, pharma has, in effect, not participated in this rally even with the upside of the U.S. having made sure that pharma was exempted from tariff hikes, he added. Also Read | Global mutual funds recover post Tariff lows. How long will momentum sustain? 'A broad-based structural uptrend is yet to emerge. However, investors should continue to invest in flexi cap types of funds and let the fund managers do the stock picking of the sectors they are comfortable with. The selection of a good fund manager based on research and their investment philosophy will be very important,' said the global markets recovered after witnessing a down post Trump tariff. As on April 28, 2025, the global indices gained upto 9%.Since April's low, the global benchmarks such as Nikkei 225, DAX, Nasdaq, and Hang Seng gained 18.28%, 16.66%, 15.21%, and 13.49% respectively. S&P 500 and NYSE surged 12.33% and 11.61% respectively in the same period, followed by Dow Jones which has gained 8.82%. The expert said that since April's low, the Nifty had a sharp rally of 10%, mostly owing to resilient Indian fundamentals being supported by global cues and the strong corporate earnings, decent GST collections, and optimism around political stability have powered investor sentiment. The domestic investors remained steady; however, a major trigger was the return of foreign institutional investors (FIIs), he added. Commenting on whether the current rally is driven more by domestic fundamentals or global cues, Minocha said that, 'On the domestic front, easing inflation fears and hopes of a Fed cut have pumped up risk aversion. Besides these factors, India is increasingly poised to become a long-term beneficiary of shifting global trade flows, especially alongside the U.S. tariff-related uncertainties, that is, at the cost of China, Mexico, and Canada. The long-term India growth story is intact and the confidence is being seen with the recent global developments.'One should always consider risk appetite, investment horizon, and goals before making investment decisions. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
