The Market Podcast | Put your money to work, valuation ripe for stock picking

The most difficult thing right now to do is to buy or sell shares. Why we say that is because the market is moving swiftly in both directions which makes it difficult for investors to take an investment call.

There is no denying of the fact that this is the best time to put your money to work as valuations have become reasonable, says Sachin Trivedi, Equity Fund Manager & Head of Research, UTI MF in an exclusive Market Podcast with Moneycontrol.

“In January we were trading around 12000 levels and from there we have corrected by about 40 percent. There is a sharp correction that happened from an index perspective, and the valuations have also come down,” says Trivedi.

He further added that at the peak we were trading at close 24x earnings on trailing basis, and today we are trading at 15x earnings because forward earnings are hard to podcast. From the book value perspective – it has also come down to 2x from 3x earlier.

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Sachin Trivedi

Senior Vice President, Head - Research & Fund Manager|UTI AMC

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We are advising our clients to stick to their portfolio allocation because post the massive fall the allocation towards equities has come down and this is the time to make those adjustments.

If you are in the age bracket of 20-40 years – investors can stick to allocating 60 percent towards equities. “The allocation would also depend on net worth, cash flows as well as end goals for him which will decide the exact allocation strategy which can be tailor-made with the help of a professional financial advisor,” says Trivedi.