Business cycle funds aim to optimise returns by aligning their portfolios with different phases of the economic cycle. First-time investors, those who prefer stable sector allocations, and those averse to volatility should steer clear of them.
'Allocate up to 20 per cent of your core equity portfolio to quality funds.'
For returning to trend growth of over eight per cent GDP growth and sustained low inflation of four per cent, removal of supply-side constraints and investor-friendly policy reforms are key, says Rajesh Cheruvu, Chief Investment Officer, India, RBS.
Citi, HSBC and UBS etc have already cut their market targets.
Even if the bull run may continue, most experts say some profit booking is called for, points out Sanjay Kumar Singh.
Completed projects saw an improvement of 29.2 per cent over the June quarter, which is valued at Rs 0.31 trillion.
Morgan Stanley's Asia and Global Emerging Markets Strategy Report downgraded software firms on valuation and earnings concerns.
'Do some profit booking and bring your equity allocation back to its original level.'
Stick to low-cost ULIPs launched in the past few years. Go with an insurer with a good investment team and solid track record of long-term returns, suggests Sanjay Kumar Singh.
'Q1 is going to bear the brunt of the second wave, exposing full-year GDP forecasts to downward revisions, unless phase-3 of vaccination is executed quickly.'
These ETFs will also carry interest-rate risk, especially the 10-year ETF. The investor can overcome this risk by holding them till maturity, suggests Sanjay Kumar Singh.
Investors are anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over Kashmir issue.
'Equities are likely to be range-bound with a downward bias for the remaining part of the year.'
Does away with much of auction process in this market and reinvestment checks
The Indian diaspora remain bullish despite single-digit equity market returns since May 2014, says Pavan Burugula.
Without factoring in the rupee-dollar exchange rate, the index has been touching new all-time highs repeatedly.
The watershed 2014 Indian election has thrown a decisive mandate after 30 years of coalition-based governments.
Secondary market might be a better bet for investors
The muted CPI inflation print at 5% earlier this week, followed by a similar WPI number released Wednesday, seems to have spurred India's central bank into action, is how the economists are reading into Reserve Bank of India governor Raghuram Rajan's 25 basis point cut in repo rate.
Most experts said indices would open higher on Monday and rally might sustain for a few sessions
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