The advisory comes as Indian equity markets remain in a consolidation phase, impacted by global economic uncertainty, US tariffs, and a stronger dollar.
In its March 2025 Alpha Strategist report, MOPW emphasised the need for strategic investment decisions amid prevailing market volatility.
“During the current phase, it is advisable to tread with caution by adopting a strategy that is balanced and resilient,” the report stated, urging investors to align their portfolios with their risk appetite.
Mid & Small Cap Investments to be Staggered
While recommending lump sum investments in Hybrid and Large Cap funds, MOPW suggests a staggered approach for Flexi, Mid, and Small Cap funds over the next six months, with accelerated deployment in case of further market corrections.
The firm cautions that despite recent corrections, Mid and Small Cap stocks continue to trade at a premium compared to their long-term averages.
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“Due to the correction, valuation of large caps (Nifty 50) has come below the 10-yr average on 1 year forward PE basis, while mid and small caps still trade at decent premium,” it said.
Macroeconomic Outlook and Policy Impact
The report notes that India’s economy remains stable, with the government’s recent measures to boost consumption expected to support growth. However, corporate earnings in Q3FY25 failed to revive market sentiment. The firm expects clarity on economic headwinds in the first half of the year and advises investors to remain patient and selective with their equity allocations.
First Published: Mar 22, 2025 12:59 PM IST
