Latest news with #VirajGandhi
Economic Times
5 days ago
- Business
- Economic Times
Why Multi-asset funds are a smart choice in current market environment
In a volatile market environment, diversifying across asset classes using multi-asset funds can be an effective strategy, as they offer exposure to a mix of equities, debt, and gold/silver within a single investment, says Viraj Gandhi, CEO, SAMCO Mutual Fund. ADVERTISEMENT "This diversified approach helps cushion the portfolio during market downturns while still allowing participation in upside movements," he says in an interview. Edited excerpts from a chat: Nifty is trading at a premium to historical averages. Are valuations becoming a headwind or is strong earnings growth enough to justify current multiples? Nifty is currently trading at around 22.5x TTM which is a very minimal premium to historical averages. In fact, Nifty has faced a time and a price correction since the start of the year, which has significantly tamed down valuations and made some stocks relatively cheaper in the largecap space. That said, overall earnings growth hasn't fully picked up yet. We may still be a few quarters away from seeing strong, broad-based earnings. Until then, the market might stay selective, rewarding only those companies showing clear growth. The market has been caught in a consolidation range for the last 2 months amid lack of positive triggers. What can make or break the deal for bulls going ahead? For bulls to take charge again, a few key factors will be critical. An improvement in corporate earnings and supportive global cues such as a potential US rate cut or easing geopolitical tensions could provide the much-needed boost. On the flip side, any disappointment in earnings, high valuations without corresponding growth, or global headwinds like sticky inflation or geopolitical shocks could weigh on this sentiment. ADVERTISEMENT India has seen record SIP inflows and retail participation. Is this depth sustainable in the next correction? In June 2025, SIP inflows reached a record high of ₹27,269 crore, according to the Association of Mutual Funds in India (AMFI). This represents a 2.2% increase compared to the previous month's inflow of ₹26,688 crore. The number of contributing SIP accounts also rose, reaching 8.64 crore in June, up from 8.56 crore in May. This growing monthly SIP inflows number highlights the growing maturity of the retail investors as this steady inflow has provided a strong cushion for the markets, especially during phases of global volatility. Many first-time investors have entered the markets post Covid, largely driven by rising financial awareness, better digital access, and strong past returns. While this is encouraging, it also means a large segment of investors has yet to experience a sharp or prolonged market downturn. This could test their resolve, especially if corrections extend beyond a few weeks and start affecting portfolio returns more visibly. ADVERTISEMENT That said, the shift towards disciplined investing through Systematic Investment Plans (SIPs) and the growing popularity of mutual funds indicate that a core segment of investors is here for the long term. Even if we see some dip in the flows during corrections, it is likely to be temporary. The overall trend of rising domestic participation is expected to continue, driven by favorable demographics, under-penetration of financial products, and increasing trust in market-linked instruments. In essence, while some short-term impact is possible, the structural depth looks sustainable. ADVERTISEMENT Are there specific sectors or themes that you believe are positioned for strong growth or present heightened risks in the current environment? In the current environment, financial services, pharmaceutical and healthcare stand out as sectors positioned for strong growth. What are the biggest risks domestic investors should be aware of while navigating today's markets? In the current market environment, geopolitical risk stands out as one of the biggest concerns for domestic investors. With escalating tensions in the Middle East and the looming August deadline for the implementations of tariffs by President Donald Trump, any flare-up in these areas could create significant volatility, not just globally, but also in Indian markets. ADVERTISEMENT With heightened market volatility, what approaches or strategies do you recommend for investors trying to manage risk and capitalize on market opportunities? In a volatile market environment, it's important for investors to strike a balance between managing risk and capturing potential opportunities. One effective strategy is to diversify across asset classes rather than relying solely on equities. Multi-asset funds can be a smart choice in this regard, as they offer exposure to a mix of equities, debt, and gold/silver within a single investment. This diversified approach helps cushion the portfolio during market downturns while still allowing participation in upside movements. Given the correction in the last few weeks, do you see some opportunities in defence stocks? Defence stocks have seen a strong rally recently, especially after the Pahalgam attack, as investor interest in the sector picked up. The broader theme remains intact over the long term, driven by increasing indigenization efforts and a clear push to reduce reliance on foreign suppliers for defense equipment. Government initiatives, rising defense budgets, and strong order pipelines for key players add further support to the sector's outlook. While some profit booking has been observed in the last few days, which is natural after a sharp run-up, the long-term story still looks promising. In the short term, valuations may seem stretched, and some consolidation can't be ruled out. However, for investors with a longer horizon, defense remains a structural growth theme with potential for steady returns as India continues to build its domestic capabilities. Expectations from Q1 earnings are low. Which pockets of the market do you think can surprise you? Broadly, Q1 could be muted on expectations. Capital goods and infra could positively surprise if operating leverage might start to kick-in, banks may do better due to lower credit costs and autos might surprise due to softening raw material prices.
Time of India
5 days ago
- Business
- Time of India
Why Multi-asset funds are a smart choice in current market environment
In a volatile market environment, diversifying across asset classes using multi-asset funds can be an effective strategy, as they offer exposure to a mix of equities, debt, and gold/silver within a single investment, says Viraj Gandhi , CEO, SAMCO Mutual Fund . "This diversified approach helps cushion the portfolio during market downturns while still allowing participation in upside movements," he says in an interview. Explore courses from Top Institutes in Please select course: Select a Course Category Technology Design Thinking Finance Operations Management Healthcare Artificial Intelligence Management Public Policy Product Management Data Science Data Analytics healthcare Cybersecurity Others Digital Marketing Leadership MBA others Project Management Data Science Degree CXO PGDM Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Do you have a mouse? Desert Order Undo Edited excerpts from a chat: Nifty is trading at a premium to historical averages. Are valuations becoming a headwind or is strong earnings growth enough to justify current multiples? Nifty is currently trading at around 22.5x TTM which is a very minimal premium to historical averages. In fact, Nifty has faced a time and a price correction since the start of the year, which has significantly tamed down valuations and made some stocks relatively cheaper in the largecap space. That said, overall earnings growth hasn't fully picked up yet. We may still be a few quarters away from seeing strong, broad-based earnings. Until then, the market might stay selective, rewarding only those companies showing clear growth. Live Events The market has been caught in a consolidation range for the last 2 months amid lack of positive triggers. What can make or break the deal for bulls going ahead? For bulls to take charge again, a few key factors will be critical. An improvement in corporate earnings and supportive global cues such as a potential US rate cut or easing geopolitical tensions could provide the much-needed boost. On the flip side, any disappointment in earnings, high valuations without corresponding growth, or global headwinds like sticky inflation or geopolitical shocks could weigh on this sentiment. India has seen record SIP inflows and retail participation. Is this depth sustainable in the next correction? In June 2025, SIP inflows reached a record high of ₹27,269 crore, according to the Association of Mutual Funds in India (AMFI). This represents a 2.2% increase compared to the previous month's inflow of ₹26,688 crore. The number of contributing SIP accounts also rose, reaching 8.64 crore in June, up from 8.56 crore in May. This growing monthly SIP inflows number highlights the growing maturity of the retail investors as this steady inflow has provided a strong cushion for the markets, especially during phases of global volatility. Many first-time investors have entered the markets post Covid , largely driven by rising financial awareness, better digital access, and strong past returns. While this is encouraging, it also means a large segment of investors has yet to experience a sharp or prolonged market downturn. This could test their resolve, especially if corrections extend beyond a few weeks and start affecting portfolio returns more visibly. That said, the shift towards disciplined investing through Systematic Investment Plans (SIPs) and the growing popularity of mutual funds indicate that a core segment of investors is here for the long term. Even if we see some dip in the flows during corrections, it is likely to be temporary. The overall trend of rising domestic participation is expected to continue, driven by favorable demographics, under-penetration of financial products, and increasing trust in market-linked instruments. In essence, while some short-term impact is possible, the structural depth looks sustainable. Are there specific sectors or themes that you believe are positioned for strong growth or present heightened risks in the current environment? In the current environment, financial services, pharmaceutical and healthcare stand out as sectors positioned for strong growth. What are the biggest risks domestic investors should be aware of while navigating today's markets? In the current market environment, geopolitical risk stands out as one of the biggest concerns for domestic investors. With escalating tensions in the Middle East and the looming August deadline for the implementations of tariffs by President Donald Trump , any flare-up in these areas could create significant volatility, not just globally, but also in Indian markets. With heightened market volatility, what approaches or strategies do you recommend for investors trying to manage risk and capitalize on market opportunities? In a volatile market environment, it's important for investors to strike a balance between managing risk and capturing potential opportunities. One effective strategy is to diversify across asset classes rather than relying solely on equities. Multi-asset funds can be a smart choice in this regard, as they offer exposure to a mix of equities, debt, and gold/silver within a single investment. This diversified approach helps cushion the portfolio during market downturns while still allowing participation in upside movements. Given the correction in the last few weeks, do you see some opportunities in defence stocks? Defence stocks have seen a strong rally recently, especially after the Pahalgam attack, as investor interest in the sector picked up. The broader theme remains intact over the long term, driven by increasing indigenization efforts and a clear push to reduce reliance on foreign suppliers for defense equipment. Government initiatives, rising defense budgets, and strong order pipelines for key players add further support to the sector's outlook. While some profit booking has been observed in the last few days, which is natural after a sharp run-up, the long-term story still looks promising. In the short term, valuations may seem stretched, and some consolidation can't be ruled out. However, for investors with a longer horizon, defense remains a structural growth theme with potential for steady returns as India continues to build its domestic capabilities. Expectations from Q1 earnings are low. Which pockets of the market do you think can surprise you? Broadly, Q1 could be muted on expectations. Capital goods and infra could positively surprise if operating leverage might start to kick-in, banks may do better due to lower credit costs and autos might surprise due to softening raw material prices.
Time of India
01-07-2025
- Business
- Time of India
Confused about investment in stocks, gold & silver? Simplify it with multi-asset mutual funds!
With gold , silver , and equity market rallying and investors confused about which one to choose for investment, the market experts recommend that given the current geopolitical backdrop, political uncertainty, and global inflationary pressures, investors should prioritize a multi asset strategy as diversification helps in mitigating risk during turbulent times. 'Given the current geopolitical backdrop including the Israel-Iran conflict, global inflationary pressures, and political uncertainty, investors should prioritize a multi-asset strategy. Diversification across asset classes can help mitigate risk during such turbulent times. In such an environment, multi-asset funds become an ideal choice for the consumer as they offer exposure across equity, debt, commodities, and precious metals,' Viraj Gandhi, CEO, SAMCO Mutual Fund shared with ETMarkets. Also Read | Sensex vaults 11,000 points from April lows. Which mutual funds should you buy? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » He further shared that multi asset funds provide automatic rebalancing, professional management, and dynamic allocation, which is especially useful during times of elevated volatility and this is not the time to be overly aggressive. Therefore, the path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential upside, Gandhi recommended. Another expert mentions that gold prices have rallied due to global macro uncertainties and central bank buying, silver has benefited from both industrial demand and its traditional role as a precious metal, has also gained significantly whereas equity markets are hitting all-time highs, supported by high FII inflows, strong earnings outlook and macro stability. Live Events 'Due to these positive trends, this category might attract investors. However, one should remember that diversification should not be done at a fund level as it becomes difficult to reallocate across asset classes as and when required,' Chethan Shenoy, Executive Director & Head - Product & Research at Anand Rathi Wealth Limited shared with ETMutualFunds. Out of 29 multi asset funds, the majority of funds hold over 65% allocation in equity, 25% in debt and nearly 10% in others which includes gold/commodities. DSP Multi Asset Allocation Fund is an exception which holds nearly 88% in others. (Data source: ACE MF) Post witnessing the allocation, Shenoy mentions that the uniformity across most schemes limits both diversification and flexibility and since the equity portion is often large-cap heavy, investing across multiple such funds may still not provide meaningful diversification. He further advised that instead of relying on multi asset allocation funds , investors should consider reaching their desired asset class exposure at the portfolio level and allocating to multi asset funds may not be the most efficient choice, especially when similar or better results can be achieved through a customizable equity-debt mix. Also Read | JioBlackRock Mutual Fund: 3 NFOs open for subscription today. Should you invest? In the current calendar year so far, multi asset allocation funds received a total inflow of Rs 11,054 crore, the second highest among all hybrid categories. Among six-hybrid mutual fund categories, in March, multi asset allocation funds received the highest inflow of Rs 1,670 crore. The total AUM of multi asset funds was recorded at Rs 1.18 lakh crore as on May 31, 2025. As these funds are gaining investors' interest, Pradeep Kesavan, Fund Manager and Equity Strategist at SBI Mutual Fund recommends multi asset funds along with flexi cap and balanced advantage funds as a good option for new investors with a moderate risk profile. In the last one year, there were 24 multi asset allocation funds, of which eight gave double-digit, 14 gave single-digit whereas two gave negative returns. WOC Multi Asset Allocation Fund offered the highest return of 15.71% in the last one year, followed by DSP Multi Asset Allocation Fund which gave 13.30% return. Aditya Birla SL Multi Asset Allocation Fund was the last one to offer double-digit return and it gave 10.40% return in the last one year. HSBC Multi Asset Allocation Fund offered the lowest positive return of 4.53%. Shriram Multi Asset Allocation Fund and Motilal Oswal Multi Asset Fund lost 3.23% and 9.01% respectively in the last one year. Shenoy is of the opinion that despite the recent performance, multi-asset allocation funds may not fully capitalize on each asset's potential due to their preset allocation structures and these funds remain equity-heavy, and do not offer significant differentiation from equity funds. 'If investors are already defining their asset mix at the overall portfolio level, adding a multi-asset allocation fund could lead to redundancy or concentration, especially if the fund is skewed toward equity,' he added. Also Read | 11 equity mutual funds multiply investors' lumpsum investment by over 4.3 times in 5 years 'Hence, investors should consider avoiding multi-asset allocation funds and instead opt for individual exposure to equity and debt based on their financial goals and risk profile. This allows for the ideal strategy for better returns, long term growth and wealth creation,' Shenoy recommends. According to the Sebi mandate, multi asset allocation funds invest in at least three asset classes with a minimum allocation of at least 10% each in all three asset classes. One should always invest based on their 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.
Economic Times
24-06-2025
- Business
- Economic Times
Not the time to pick favourites: Viraj Gandhi's case for buying multi-asset funds
How are you reading the current market setup? Is this a time to be cautious or bold? What themes or sectors are offering the best risk-adjusted returns right now, in your view? Live Events How do you approach asset allocation in times like these? If you have Rs. 10 lakh to invest, how would you divide it in between stocks, debt and gold/silver. Within financials, the market seems to be favouring PSU banks and NBFCs over private banks in this rate cut cycle. Your thoughts? IT stocks have bounced back in recent weeks. Do you think that the momentum is here to stay? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Given the current geopolitical backdrop including the Israel-Iran conflict , global inflationary pressures, and political uncertainty, investors should prioritize a multi-asset strategy, says Viraj Gandhi , CEO, SAMCO Mutual Fund "This is not the time to be overly aggressive. The path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential upside," he excerpts from a chat:The current global situation remains uncertain given how the war situation is evolving. One needs to be cautiously optimistic, however, geo-political developments in the Middle East are likely to influence near-term market sentiment, with any signs of de-escalation being closely monitored. India has proved to be a resilient market with astute economic fundamentals, growing GDP, tamed inflation, and healthy foreign exchange reserves. Its solid consumption base, improving manufacturing sector, and ongoing reforms position is poised for long-term growth. However, in the wake of ongoing global uncertainty, it would be wise for investors to take a careful and selective approach in the short to medium pharmaceutical sector presents strong opportunities for investors thanks to solid domestic fundamentals and positive global trends. In today's geopolitical climate, the China+1 strategy is becoming more popular as global companies try to diversify their supply chains away from China. This shift gives India a strategic edge because of its strong position in making generic drugs, solid research and development capabilities, and cost-effective production methods. With a reputation for high-quality medicines at competitive prices, the Indian pharma sector is set to play an even larger role in global healthcare. Domestically, rising healthcare awareness, increased government spending, and higher demand for affordable medicines are also boosting the sector banks have been in momentum, and they continue to offer valuation comfort relative to other pockets of the market. With resilient fundamentals, healthy balance sheets, and improving credit growth outlook position them well for the next leg of sustained performance. Further, the recent RBI rate cut accelerates prospects of the banking sector, especially private sector, by reducing credit costs and potentially boosting loan demand. This makes the sector an attractive option for investors seeking both stability and the Indian markets, currently the valuations are a bit stretched in several pockets especially in SMID segments. At the same time, gold has outperformed this year, acting as a safe haven amid rising global uncertainty, while silver has also seen a sharp rise in prices. These trends underline the importance of a diversified investment approach. Given the current geopolitical backdrop including the Israel-Iran conflict, global inflationary pressures, and political uncertainty, investors should prioritize a multi-asset across asset classes can help mitigate risk during such turbulent times. In such an environment, multi-asset funds become an ideal choice for the consumer as they offer exposure across equity, debt, commodities, and precious metals i.e., all asset classes within a single product. These funds provide automatic rebalancing, professional management, and dynamic allocation, which is especially useful during times of elevated volatility. This is not the time to be overly aggressive. The path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential the trend, RBI appears to have adopted a pro-growth monetary policy stance. The central bank seems to have front-loaded policy actions with a slash in the repo rates. Post the change in monetary policy stance, large private banks started trimming their savings rates. Even large PSU banks have joined the bandwagon and were quick this time to slash the savings rates. This certainly suggests that the banking sector is focused on cushioning the NIMs. While systemic credit growth remains the centrepiece, with RBI's strong push on liquidity, lower and stable rate environment, credit growth appears to have bottomed-out. Given the valuation gap of private banks and PSU counterparts has always remained elevated, current inclination towards PSU banks appears to just narrow the stocks have bounced back in recent weeks due to several factors, but it is unclear how long this trend will last. On the positive side, signals from the US Fed about two possible rate cuts this year are good news for Indian IT companies. Lower interest rates usually encourage tech spending and make offshore services more IT firms are in a strong position in this environment because they are agile, cost-effective, and can take advantage of digital transformation deals. These companies are seeing strong deal activity and stable margins, indicating they could keep growing. However, there are challenges that might limit a widespread rally. Economic conditions in major markets, especially Europe and the US, are still uncertain and could slow down large tech early signs of deflation in artificial intelligence (AI) indicate that making money in this area is happening more slowly than expected, especially for larger IT firms that have heavily promoted AI services. These bigger players are also facing challenges from older business models and longer decision-making processes, which could affect their growth in the near term.
Time of India
24-06-2025
- Business
- Time of India
Not the time to pick favourites: Viraj Gandhi's case for buying multi-asset funds
Given the current geopolitical backdrop including the Israel-Iran conflict , global inflationary pressures, and political uncertainty, investors should prioritize a multi-asset strategy, says Viraj Gandhi , CEO, SAMCO Mutual Fund . "This is not the time to be overly aggressive. The path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential upside," he said. Edited excerpts from a chat: How are you reading the current market setup? Is this a time to be cautious or bold? The current global situation remains uncertain given how the war situation is evolving. One needs to be cautiously optimistic, however, geo-political developments in the Middle East are likely to influence near-term market sentiment, with any signs of de-escalation being closely monitored. India has proved to be a resilient market with astute economic fundamentals, growing GDP, tamed inflation, and healthy foreign exchange reserves. Its solid consumption base, improving manufacturing sector, and ongoing reforms position is poised for long-term growth. However, in the wake of ongoing global uncertainty, it would be wise for investors to take a careful and selective approach in the short to medium term. What themes or sectors are offering the best risk-adjusted returns right now, in your view? The pharmaceutical sector presents strong opportunities for investors thanks to solid domestic fundamentals and positive global trends. In today's geopolitical climate, the China+1 strategy is becoming more popular as global companies try to diversify their supply chains away from China. This shift gives India a strategic edge because of its strong position in making generic drugs, solid research and development capabilities, and cost-effective production methods. With a reputation for high-quality medicines at competitive prices, the Indian pharma sector is set to play an even larger role in global healthcare. Domestically, rising healthcare awareness, increased government spending, and higher demand for affordable medicines are also boosting the outlook. Live Events Private sector banks have been in momentum, and they continue to offer valuation comfort relative to other pockets of the market. With resilient fundamentals, healthy balance sheets, and improving credit growth outlook position them well for the next leg of sustained performance. Further, the recent RBI rate cut accelerates prospects of the banking sector, especially private sector, by reducing credit costs and potentially boosting loan demand. This makes the sector an attractive option for investors seeking both stability and growth. How do you approach asset allocation in times like these? If you have Rs. 10 lakh to invest, how would you divide it in between stocks, debt and gold/silver. Within the Indian markets, currently the valuations are a bit stretched in several pockets especially in SMID segments. At the same time, gold has outperformed this year, acting as a safe haven amid rising global uncertainty, while silver has also seen a sharp rise in prices. These trends underline the importance of a diversified investment approach. Given the current geopolitical backdrop including the Israel-Iran conflict, global inflationary pressures, and political uncertainty, investors should prioritize a multi-asset strategy. Diversification across asset classes can help mitigate risk during such turbulent times. In such an environment, multi-asset funds become an ideal choice for the consumer as they offer exposure across equity, debt, commodities, and precious metals i.e., all asset classes within a single product. These funds provide automatic rebalancing, professional management, and dynamic allocation, which is especially useful during times of elevated volatility. This is not the time to be overly aggressive. The path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential upside. Within financials, the market seems to be favouring PSU banks and NBFCs over private banks in this rate cut cycle. Your thoughts? Nudging the trend, RBI appears to have adopted a pro-growth monetary policy stance. The central bank seems to have front-loaded policy actions with a slash in the repo rates. Post the change in monetary policy stance, large private banks started trimming their savings rates. Even large PSU banks have joined the bandwagon and were quick this time to slash the savings rates. This certainly suggests that the banking sector is focused on cushioning the NIMs. While systemic credit growth remains the centrepiece, with RBI's strong push on liquidity, lower and stable rate environment, credit growth appears to have bottomed-out. Given the valuation gap of private banks and PSU counterparts has always remained elevated, current inclination towards PSU banks appears to just narrow the gap. IT stocks have bounced back in recent weeks. Do you think that the momentum is here to stay? IT stocks have bounced back in recent weeks due to several factors, but it is unclear how long this trend will last. On the positive side, signals from the US Fed about two possible rate cuts this year are good news for Indian IT companies. Lower interest rates usually encourage tech spending and make offshore services more attractive. Mid-sized IT firms are in a strong position in this environment because they are agile, cost-effective, and can take advantage of digital transformation deals. These companies are seeing strong deal activity and stable margins, indicating they could keep growing. However, there are challenges that might limit a widespread rally. Economic conditions in major markets, especially Europe and the US, are still uncertain and could slow down large tech spending. Moreover, early signs of deflation in artificial intelligence (AI) indicate that making money in this area is happening more slowly than expected, especially for larger IT firms that have heavily promoted AI services. These bigger players are also facing challenges from older business models and longer decision-making processes, which could affect their growth in the near term.
