Suranjana Borthakur, who is in charge of distribution at Mirae Asset Investment Managers, shared some insights about investing. They prefer not to focus too much on specific sectors but instead look at long-term trends. Right now, they think the consumption trend, where people buy goods and services, is strong. They also feel positively about banking and healthcare sectors.
Mirae believes it’s good to have a mix of large companies (large caps) and smaller companies (mid and small caps) in an investment portfolio. A good balance would be 50% in large caps and 50% in mid and small caps for long-term investments.
Looking at investment patterns, they noticed that people are still putting money into Systematic Investment Plans (SIPs), which are investment plans where people invest a fixed amount regularly. Despite market ups and downs, SIP inflows have reached record highs of over ₹26,000 crore. This shows that retail investors are confident in long-term wealth creation in India.
Interestingly, there has been a significant increase in investments in sector-specific funds, with around ₹15,000 crore flowing into these. There have also been several New Fund Offers (NFOs) during this time. The mid and small-cap segments are seeing more interest, and Mirae thinks that investors should focus on the potential for future returns rather than past performance.
They suggest that if investors are looking at a three to five-year investment horizon, they should consider allocating more to mid and small caps, while also looking at flexi-cap and multi-cap mutual funds. Sectoral funds can be part of an investment strategy but should be kept in check and not dominate a portfolio.
As for upcoming investment trends, they see opportunities in the consumption, banking, and healthcare sectors, especially with the Union Budget coming up, which could affect market conditions.
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