Investment strategy to be adopted in uncertain times: Aditya Birla Money

MUMBAI: The Indian markets have been under intense pressure lately due global developments and foreign outflows. Investors are waiting for the rupee to stabilise and the RBI to reverse recent policy actions so that the short term rates fall back to their earlier levels.


Aditya Birla Money has come out with and investment strategy which can be adopted during these uncertain times. The brokerage has shortlisted few companies with focus on dividend growth over dividend yield.

“Companies with growing dividends are generally growth companies which offer potential of capital appreciation in long term,” said Vivek Mahajan, Head of Research, Aditya Birla Money.

According to Mahajan, in the past, investors got stuck focusing on dividend yields as they saw erosion in the capital due to fall in the stock price. E.g PSU Banks, despite of high dividend payout ratio, they are posting lower growth.

He has highlighted companies, which can be looked upon for investing with low risk-reward equation.



(Source: ABML Research, Bloomberg)

“Centre’s efforts to reduce the twin deficit could trigger minor rallies from time to time. However, we remain positive despite the recent turbulence. Pain may not be in the price yet and as such it becomes important to tread with caution. Recent sell off has improved dividend yields,” he said.

Companies that investors can add to their portfolios.