ETMarkets Investor’s Guide: Is It Time to Reduce Your Portfolio’s Equity Allocation?

Welcome to the ETMarkets Investor Guide, a show on asset classes, market trends and investment opportunities. It is Bhaskar Dutta.

India’s benchmark stock indexes have seen a one-way rise since early August, which has helped them climb their record highs and become among the top performing markets in the world for that time frame. However, stock valuation appears to have gotten rich, with Nifty now citing more than 20 times two-year futures earnings. In traditional portfolios where investors use the asset allocation approach, the recent rally has resulted in a significant increase in exposure to equities.

ETMarkets’ Chiranjivi Chakraborty met with Mr. Amit Ganatra, Senior Fund Manager at HDFC Asset Management, to understand whether investors should reduce their exposure to equities, what are the prospects for investing in debt and why a multi-asset approach could worth a makeover.

To listen!

Q. At a time when equity valuations seem to fully incorporate most of the positives, does it make more sense to reduce the allocation to this asset class?

Q. With interest rates bottoming out, how should investors view the debt portion of their portfolios? Where are the opportunities in this market?

Q. Inflation has been a major topic of global discussion. How should investors protect their portfolios in the event of a surge in inflation in the years to come, especially when gold underperforms sharply?

Q. Multi-asset funds haven’t had a solid year or two compared to other investment approaches, why should investors take this approach now?

Thank you Chiranjivi and Mr. Ganatra for a very intriguing conversation.

That’s all in this week’s special podcast. Keep checking this space for more interesting content and take the time to follow our market podcasts twice a day. Stay safe and have a good weekend!

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