Nikhil Rungta, Co-CIO at LIC Mutual Fund Asset Management, 유지 of the market sentiments has changed, with investors demonstrating resilience in the face of market volatility. Despite negative sentiments, investors continue to invest, albeit in smaller amounts, driven by increased financialization of savings and the growing preference for equities over traditional asset classes. Systematic Investment Plans (SIPs) have also played a vital role in fostering a disciplined investment culture, ensuring steady inflows regardless of short-term market fluctuations.
Rungta further emphasizes that the dichotomy between the Fed and RBI’s approaches can create short-term uncertainty, particularly in rate-sensitive sectors. However, he believes that the focus on economic stability and corporate earnings will ultimately drive markets. Despite the current market trends and the “Trump factor,” equity investments, especially through SIPs, remain a strong long-term wealth creation tool.
Rungta identifies infrastructure, defense, and PSU sectors as relevant investment opportunities, despite the downward revision in FY25 GDP projections and low capex spending in the first half of the year. He notes that these sectors have long-term structural drivers, such as government initiatives and private sector participation, which may continue to drive growth.
Rungta advises investors to focus on quality companies with strong order books, execution capabilities, and reasonable valuations, rather than worrying about short-term market noise. He also suggests that investors may consider rebalancing their allocation to small-cap funds due to the recent rally, but staying invested through SIPs and keeping an eye on valuations is a balanced approach.
Overall, Rungta’s views suggest that investors should remain focused on long-term structural trends, rather than short-term market fluctuations. He believes that equities, particularly through SIPs, can continue to provide strong long-term returns, and that investors should consider investing in infrastructure, defense, and PSU sectors, despite the current macroeconomic environment.