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Wait for better opportunities to deploy fresh capital: Viral Shah

Maulik Diwan, an avid follower of stock markets, has been investing INR20,000 every month since 2012 in the systematic investment plan (SIP) of an equity mutual fund. It has fetched him a return of 12% to 14% every year. Diwan expects a similar return from the scheme in 2023 too, but his target could be way off the mark this time around.

Amid high inflation and the Adani-Hindenburg saga, some fund managers are of the view that ending the year with positive
returns itself would be an achievement.

Viral Shah, Head - brokerage, 360 ONE WAM (formerly IIFL Wealth & Asset Management), feels that the Q3 results have largely been on expected lines with some sectors showing volume contraction due to lower demand. He points out that the Nifty 50index has been in the 17,500-18,400 band for more than four months, indicating the lack of triggers for a move on either side. FII selling due to portfolio reallocation is also weighing, he adds.

In such a scenario, investors in India, who were hoping for double-digit portfolio returns in FY24, will have to be patient for the next three-six months and wait for better opportunities to deploy fresh capital.

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