Gold is "Vishnu" & fixed income is "Cinderella" in this volatile market, says Kotak's Lakshmi Iyer

Lakshmi Iyer, CEO, Investment and Strategy, Kotak Alternate Asset Managers

Indian markets have been on a rollercoaster ride over the past two months, with the Nifty index bouncing between 22,000 and 23,000 like a restless Bollywood hero caught in an action-packed sequence. Channeling a cinematic vibe, Lakshmi Iyer, CEO - Investment and Strategy at Kotak Alternate Asset Managers, described the market as experiencing full-blown "Hulchul." However, she advised investors against the impulse to abandon one asset class entirely in favor of another.

"Right now, the sentiment leans towards shifting from one asset class to another. But just because our recency bias nudges us toward seemingly safer alternatives, it doesn’t mean we should exit one asset class completely," Iyer remarked on the sidelines of Moneycontrol’s Global Wealth Summit.

Looking ahead to 2025, Iyer dubbed it the "Year of Snakes and Ladders," predicting that the market will continue to toy with investors like a mischievous board game.

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"Picture an investor climbing up to 98, convinced they are about to cross the finish line, only to slide all the way down to 15 or 18—forced to start again from scratch. That is the nature of this market; we cannot ignore its ups and downs. One moment, the gully boys are turning into 'Jawans', the next, the 'Jawans' morph into '3 idiots', and before you know it, there's a 'Deepseek' moment where Nvidia whispers, 'Koi Mil Gaya,'" she quipped.

When asked whether investors should focus solely on equities, Iyer said: If the goal is to double Rs 100 to Rs 200, equities could be the ticket. However, in a market as unpredictable as this, portfolio diversification is key—allocating some weight to gold, fixed income, and alternative assets.

"You can’t afford to put all your eggs in one basket. Gold has been the ‘Student of the Year’ and might even get a sequel this year and the next. But can you rely only on gold? Absolutely not. If you're aiming for Rs 100 to Rs 200, equities still hold the crown. Gold, on the other hand, plays the role of a portfolio protector—think of it as Vishnu, maintaining balance. And fixed income? That’s your Cinderella story—the underdog that quietly outshines even gold, proving its worth when you least expect it," Iyer explained.

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