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Asset Allocation Market Outlook Wealth Management

Navigating the dip

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Pratik Bagaria
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Asset Allocation Market Outlook Wealth Management

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Navigating the dip by Pratik Bagaria

Highlights

  • Navigating the dip
  • What’s happening?
  • Factors impacting the markets in the short-term
  • Positive long-term factors amid market volatility
  • What should an investor do?

Synopsis/Summary

  • Market performance: The Nifty 100 has declined ~9% in the last 30 days, and ~13% since
    an all-time high in September 2024. The Mid and Small cap segments have seen more
    significant corrections, aligning with our previous analysis.
  • Market outlook: Our outlook on the market remains consistent with our previous communication to you. In the short term, we anticipate the possibility of further declines, but we don’t foresee any underlying issues in the long run.
  • Investments through Dezerv: While it is extremely difficult and counter productive to time the market, in anticipation of the market fall, we have been taking precaution by moving capital to ensure your portfolios are large cap heavy. We believe the valuations in the large-cap space are still reasonable and are expected to yield good returns over the next 3 years.

Recommendation for clients:

  • Review all your external assets and assess your asset allocation.
  • For investors with steady income streams, this is a good time to benefit from Systematic Investment Plans (SIPs). Market corrections allow you to accumulate more units at lower prices – effectively lowering your average purchase cost.
  • If you have small cash reserves (<5% of your total equity portfolio), it is a good time to deploy money now.
  • If you have large capital to invest, our recommendation for deployment remains unchanged (since we are at the same level as of Mid Nov): 40% upfront, with the remaining funds to be deployed across 8 tranches of 7.5% each, fortnightly over the next 4 months.
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Written By

Pratik Bagaria

Pratik Bagaria leads Public Market Investments at Dezerv, bringing two decades of experience in managing wealth for high-net-worth individuals and family offices. An IIM Ahmedabad MBA, Pratik has built his career at the intersection of institutional-grade investment thinking and personalised wealth management—combining rigorous analytical frameworks with an intuitive understanding of each client\'s unique financial landscape.

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