DSP Mutual Fund has revealed insights for a thoughtful portfolio approach in 2024. DSP Mutual Fund has advised diversifying portfolios across market cap segments to maintain a balance during different market conditions. In 2023, mid and small caps experienced significant run-ups, with DSP favoring quality midcaps for wealth creation with reduced volatility and fewer drawdowns. Understanding business cycles and valuation cycles in each sector is crucial for future investment. Vinit Sambre, Head of Equities at DSP Mutual Fund, acknowledges that certain years may yield better outcomes than others, and certain sectoral themes may deliver significant alpha.
DSP has also increased its holdings in Public Sector Undertakings (PSU) companies due to improved operating performance. India, with one of the lowest median ages globally, offers an attractive long-term investment opportunity due to its dominant working-age population and growing income levels. However, investors should remain vigilant due to decelerating global growth, rising interest rates, persistent dollar strength, and heightened geopolitical uncertainties.
India’s primarily domestically driven growth is expected to be less susceptible to global macro risks, but expectations need to be set for the current year based on rich valuations.
