Motilal Oswal urges balanced portfolio mix as India-US trade deal lifts sentiment

Motilal Oswal Private Wealth is advising investors to adopt a balanced allocation strategy — anchoring portfolios with large-cap or hybrid funds, and complementing them with staggered exposure to midand small-caps — with sentiment improving following the finalisation of the India-US trade deal.

“Investors could allocate 50% to large caps and hybrids, 40% to mid and small caps, and 10% to global markets,” says Ashish Shanker, MD & CEO, Motilal Oswal Private Wealth. He recommends making lumpsum allocations to large caps and hybrids immediately, while staggering investments into mid and small caps over the next couple of months. Within global markets, he favours emerging-market exposure.

Following the sharp run-up in silver prices, the wealth manager suggests partial profit-booking for investors with heavy exposure, while maintaining a neutral stance on gold for portfolio stability. Those under-allocated to gold can consider gradual accumulation on dips for ‘moderate’ medium-term returns.