Here’s how Nikhil Kamath of Zerodha advises you to invest ₹1 lakh today
Nikhil Kamath, co-founder Zerodha and True Beacon expects the equity market to stay volatile in the coming days and he is taking a conservative approach while managing his personal portfolio with only 40 percent of the total portfolio invested in equity.
“On a broader portfolio level, I am about 40% equity and 60% debt, which for me is probably as conservative as I ever get,” Kamath said in an interview to Mint.
He feels at 21-22 times the one-year forward earnings, the market is expensive, especially given the inflation and growth rate.
Globally, the central banks are trying to fight the inflation, while avoiding a hard landing.
Some of the other challenges faced by global investors are impact of Russia-Ukraine war on on commodity prices, high inflation, slowing growth rate and a potentially looming slowdown.
The Indian market has been in an uptrend for last 8 days expect for December 2, when it consolidated a bit.
The benchmark indices – Sensex and Nifty – surged to record high levels during the week as foreign institutional investors (FIIs) doubled down on Indian shares in November 2022.
For someone who wants to invest ₹1 lakh in Indian market today, Kamath advised him/her to diversify. “Build a portfolio of five to six stocks. If it’s the only one lakh rupees that that person has, I would say don’t buy stocks for the entire one lakh, buy some debt, buy some gold,” he said.
Within equity market, he advised sticking to largecaps and bluechip companies.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Download Finplay News App to get Daily Market Updates.
More
Less
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.