Market Today 26 Aug 2015

Market Today The current market fall has more to do with global developments like China slowdown, and the expectations of a meaningful slowdown in commodity exporting countries owing to crash in commodity prices, thus leading to deflation worries across world. India is actually a beneficiary to this and the selloff in Indian equity markets by Foreign Institutional Investors (FIIs) is an opportunity to buy for domestic investors. I continue to favour large-caps over mid-caps and funds that intend to benefit from volatility. And I recommend investors looking at equity investments to allocate in our Asset Allocation and Large-cap oriented funds.

On fixed income we believe it is an appropriate time to invest in duration funds. Fixed Income is the only asset class that tends to outperform in a deflationary environment. Indian bond yields are at attractive levels as compared to last 10 years and you should invest in duration funds with an aim to benefit from this opportunity. Happy Investing