'We typically advice new investors to start with passive funds'

How is your team viewing the current market valuations and preparing for possible corrections? Market valuations are currently at a premium to their long-term average. Mid and small caps are trading at higher valuations than large caps, as reflected in their respective indices. Moreover, the share of mid and small caps in aggregate market capitalisation is significantly higher than its historical trend. Large caps are better positioned in the current market than mid and small caps. At UTI AMC, we consistently advise investors to maintain an appropriate asset allocation based on their financial goals and risk appetite. This should be the foundation of investors' decisions rather than their ability to forecast the timing and magnitude of market mo

This article was originally published on November 06, 2024.