Daily Voice: "Lower Your Expectations on Market Returns," Says UTI AMC's Karthikraj

In a candid assessment of the current investment landscape, Karthikraj Lakshmanan, Senior Fund Manager at UTI Asset Management Company (AMC), has urged investors to moderate their expectations regarding market returns in the near future. Speaking to a leading financial platform, Karthikraj emphasized the need for realistic outlooks amid evolving global and domestic economic conditions.



Market Returns May Normalize

"Investors need to lower their expectations on market returns," said Karthikraj. "The exceptional returns witnessed during recovery phases, such as the post-pandemic period, are unlikely to sustain as markets normalize."

Karthikraj pointed to several contributing factors, including slowing economic growth, elevated interest rates, and persistent inflation concerns. These challenges are expected to weigh on corporate earnings and potentially temper market performance in the coming quarters.

The Role of Asset Allocation

Highlighting the importance of diversification, Karthikraj recommended that investors adopt a balanced approach to their portfolios. "Now is the time to focus on long-term goals and ensure proper asset allocation," he noted. Diversifying across asset classes such as equities, fixed income, and alternative investments could help mitigate risks associated with market volatility.

Global and Domestic Trends

Karthikraj also commented on the interplay between global and domestic factors shaping the market. Internationally, tighter monetary policies by central banks, geopolitical tensions, and macroeconomic uncertainties are creating a challenging investment environment. Domestically, while India remains a bright spot with resilient growth, high valuations in certain sectors demand caution.

Advice for Investors

In conclusion, Karthikraj advised investors to temper their expectations and focus on disciplined investing. "The days of double-digit annual returns may not be the norm going forward. Staying patient and sticking to a well-thought-out financial plan will be critical," he added.

As market dynamics continue to evolve, his insights serve as a timely reminder for investors to stay grounded and prepared for a more measured phase of returns.

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