Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers, oversees assets under management worth Rs 1.9 lakh crore (as of February 2025). Of this, 70% is allocated to equities and 11% to debt. Amid market volatility, Mohanty advises investors to avoid rash decisions. Edited excerpts: How worried are you looking at the recent market fall? In the market, there are two types of people—buyers and sellers. Buyers prefer a downturn, while sellers want prices to rise. As a buyer, I see this as an opportunity. Prices are reasonable, valuations look attractive, and for someone like me, who earns a salary and invests regularly, these are favourable times. Are we nearing the bottom or are we in for long-term pain? Concerns about market froth and high valuations were already being discussed over the past year. A correction was always on the cards. While the past five months have been challenging, such corrections follow a long one-way market rally. The shift began late last year when multiple factors converged—an urban slowdown, a weakening rupee, slowing GDP growth, and FIIs (foreign institutional investors) pulling out. When an overbought market faces such pressures, a correction is inevitable. Even today, despite broader participation, Indian markets remain relatively illiquid, making them vulnerable to cascading selloffs. However, from an investor’s perspective, the margin of safety is now bigger than it was last year. While the market isn’t cheap, it’s certainly more reasonably valued. Are we at the risk of heading into a prolonged bear market? Globally, there is a strong consensus that India remains a compelling growth story. However, Indian markets have historically traded at a premium. Market corrections are inevitable. Predicting the exact bottom is impossible, but we believe the worst is behind us. Some corrections, especially beyond the index, have been particularly sharp. This suggests that we are close to stabilisation, and a little patience from investors could significantly benefit their portfolios in the long run. Now is the time for resilience, not panic. In turbulent markets, it’s best to stay the course rather than make hasty decisions. If you are considering an exit, this may not be the ideal moment; you will get a better opportunity, but patience is key. What is Mirae Asset’s current allocation between equity, debt, and cash? In volatile markets, the strategy shifts between momentum and defensive plays. Over the last two to three years, diversified portfolios were not best performers in a return-driven market, where risk took a backseat. Our portfolios remained largely unchanged, yet their performance rebounded sharply as market dynamics shifted. Take our large-cap fund. Last March, it wasn’t among the top performers, but as the market landscape changed, it gained significantly. This wasn’t due to portfolio adjustments but a shift in market trends. We stayed true to our convictions, maintained diversification, and consistently flagged risks. Amid the downturn, financials and IT have held steady while other sectors have seen corrections. Given our overweight position in financials, our funds have remained resilient. Which fund categories do you expect to perform well as markets approach a potential bottom, and recovery begins? In times of market adversity, it’s wise to fall back on the core pillars of the economy—banking and financials, healthcare, and consumption. These sectors remain strong regardless of market cycles. Our house view since January has been clear: 2025 is a year of accumulation, not immediate returns. Wealth is built by accumulating quality assets at lower valuations, positioning for future market upturns. While no immediate trigger is in sight given global uncertainties, the longer markets stay at these levels, the better it will be for disciplined investors. Those shifting lump sums to SIPs might even consider deploying lump sums now. How should investors, especially those under 30, approach asset allocation in this downturn? Asset allocation is personal and should align with one’s life goals. The key question is: Why are you investing? Define your goals, determine the time frame, and then align your asset mix accordingly. Each asset class has a distinct return potential, and unrealistic expectations may indicate an unachievable goal. Almost 95% of wealth creation comes from disciplined asset allocation, yet most discussions focus on markets instead. What’s your view on gold and silver? Has their out-performance made them more critical to core portfolios? Over the last 45 years, two key unlearnings stand out for me. First, equity is not the only growth asset—gold has outperformed even from a 10-year perspective. Given global uncertainties and sovereign buying, it will continue to hold merit for the next one-two years. Second, with rates shifting, debt remains favourable. It’s rare to see equity, gold, and debt aligning positively at the same time, making this an ideal moment for investors to build well-diversified portfolios. @sakshibatra18
