Indian stock market continues to scale new highs, with the Sensex crossing the 75,000 mark. This surge has led many investors to reconsider their investment plans. In this week's episode of Invest Smart, Avni Raja sat down with Money Mantra's Viral Bhatt to discuss the current scenario and its implications.
Founder of Money Mantra, Viral Bhatt, shed light on the current market dynamics and offered advice for investors navigating this landscape. With stock markets soaring and precious metals like gold and silver also on the rise, Bhatt addressed the concerns of investors amidst this euphoric yet apprehensive atmosphere.
Highlighting the importance of understanding the market's intricacies, Bhatt cautioned against overlooking potential signs of overvaluation, particularly in segments like mid-cap and small-cap stocks. He emphasised the need for investors to align their investment decisions with their financial goals, risk tolerance, and time horizons.
Diversification emerged as a key theme in Bhatt's recommendations, urging investors to prudently allocate their assets across various classes, including stocks, mutual funds, commodities, gold, and silver. Additionally, he underscored the significance of revisiting financial goals and maintaining a balanced portfolio tailored to individual circumstances.
Speaking on profit booking, Bhatt advocated for a measured approach, advising investors to stay the course while considering partial profit booking in certain segments. He suggested reallocating profits into less volatile assets like large-cap stocks or debt instruments, aligning with investors' risk profiles and objectives.
Addressing concerns specific to mutual fund investors, Bhatt outlined factors such as achieving financial goals, performance evaluation, and the importance of aligning fund choices with investment horizons and risk appetite. He also emphasised the role of strategic asset allocation in optimising returns while managing risks effectively.
Concluding the discussion, Bhatt offered insights into the role of gold as an investment avenue, recommending a modest allocation of 5-10% in portfolios. He highlighted gold's historical performance as a hedge against inflation, aligning with the broader investment strategy outlined during the episode.