Stories
ICICI Prudential AMC CIO Sankaran Naren Shares Strategy for Volatile Markets
- •Indian equity markets face heightened volatility due to elevated US interest rates, high crude oil prices, geopolitical tensions, and subdued foreign flows.
- •Sankaran Naren advises investors to focus on asset allocation, unconstrained investing, and staying invested during turbulent times.
- •Investors should avoid over-reliance on a single asset class and instead use a mix of equity, debt, and hybrid strategies.
- •Adopting a contrarian approach helps identify genuine underperformers across large, mid, and small-cap segments with long-term potential.
- •Short-term market weakness should not trigger exits, as patience is vital to capturing subsequent market recoveries.
Key Questions Answered
Sankaran Naren advises investors to focus on three key principles during market volatility: maintaining proper asset allocation rather than relying solely on equities, adopting a contrarian investment approach to look beyond recent winners, and staying invested instead of exiting after a correction.
A contrarian strategy helps investors look beyond recent market performance to identify underperformed stocks and sectors where fundamentals may eventually improve or where long-term potential is not yet reflected in valuations.
Equities can experience prolonged periods of volatility, so relying exclusively on them increases portfolio risk and dependence on a single asset class. Using hybrid and asset-allocation strategies helps investors navigate different market cycles more effectively.
