BFSI Insight Summit: Look Beyond Volatility, MF CIOs Tell Investors

Leading mutual fund executives speaking at the Business Standard BFSI Insight Summit advised investors to navigate market volatility by prioritizing valuations, long-term earnings potential, and proper asset allocation rather than chasing recent market winners.

Participants in the panel discussion titled 'Navigating Uncertainties and Volatile Markets' included S Naren of ICICI Mutual Fund, R Sivakumar of Axis Mutual Fund, Taher Badshah of Invesco Mutual Fund, Harish Krishnan of Aditya Birla Mutual Fund, and Nimesh Chandan of Bajaj Asset Management. They highlighted that recent market behavior has caused frustration among investors accustomed to the post-pandemic rally, noting that emotional reactions and fear frequently lead to poor timing.

Key Insights from Fund Managers

• Focus on Fundamentals: Panellists urged investors to look beyond headline indices and examine underlying business fundamentals and valuations.
• Asset Allocation and Debt: Experts noted that fixed-income instruments, such as government bonds offering attractive yields, have often been overlooked during equity rushes and should form part of a balanced portfolio.
• Sector Rotation: Harish Krishnan outlined a framework considering corporate profit shares, market capitalization, investor ownership, and recent return sources, suggesting opportunities in underperforming areas like technology, consumer staples, private-sector banks, and insurance.
• Managing Behavioural Biases: Nimesh Chandan cautioned against letting fear and past high-return expectations dictate decisions, pointing out that experienced fund managers understand cyclical market opportunities better than newer participants.

Practical Implications and Verification

For investors reviewing their portfolios, the discussion underscores the importance of adhering to disciplined investment frameworks, using pre-commitments to avoid emotional decisions, and maintaining diversification across asset classes. Readers can verify official event details and panel transcripts by visiting the Business Standard BFSI Insight Summit coverage online.