Moneycontrol
Last Updated : May 22, 2018 02:18 PM IST | Source: Moneycontrol.com

Stressed by market volatility? Expert suggests safe havens to park your wealth

Speaking on political risks, he expects some more choppiness on the back of political uncertainty. There are concerns whether the BJP will get the majority to form a government next year.

Moneycontrol News @moneycontrolcom

Midcap indices have fallen 11-12 percent so far this year and investors are wary of that they correct further. These indices were major wealth creators in the rally of 2017, when they rose 46-50 percent.

Andrew Holland of Avendus Capital Alternate Strategies told CNBC-TV18 that this volatility is not going away any time soon. He attributed the fall in midcap indices to a likely churn in mutual fund portfolios before the month ends. Once the dust settles, one could attempt to find value in them, he said.

Among global markets too, Holland sees the prevalent volatility lasting for at least six months, largely because of rising interest rates and bond yields. He said that largecap stocks are the ones most likely to make investors some money, adding that safe bets in the Indian market could be private banks, and manufacturers of fast moving consumer goods, among others.

In the broader market, the expert sees some more choppiness on the back of political uncertainties. There are concerns about whether the Bharatiya Janata Party will be able to win a majority and form a government at the Centre next year.

Adding to the risks are macro concerns on the back of factors such as rising oil and rupee versus the dollar. While things appear positive from an earnings perspective, macros look bad due to the $4 billion of bond outflows last month.
First Published on May 22, 2018 02:14 pm
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