Our view on the markets remains the same despite the rally. We still recommend ‘Proceed with Caution’, to not go gung-ho and invest in the markets but to enter in small tranches, 5% to 10% at one time and to continue the SIPs and the STPs in the mutual fund arena.
While there may not be major corrections in the Indian markets in the near future, the small corrections which will occur could be used as opportunities to enter the market.
Index funds, midcap and smallcap funds are likely to gain favour over the coming months.
Debt Markets: Corollary returns from debt markets usually come down when equity markets pick up. We don’t expect different in the coming months. Returns from fixed return investments are likely to come down and remain low over this year.
This article is written for InvestmentYogi by Lovaii Navlakhi, IMM.