Despite global uncertainty, geopolitical tensions, and market volatility, experts note that India's growth story remains strong. With the start of the new Samvat, coinciding with Diwali, investors may find opportunities in the mutual fund, stock, and gold sectors.
It is advised to maintain a balance between stocks, gold, and debt instruments while monitoring the improvement in large companies' profits and global events. It is necessary to carefully assess the potential of small-cap stocks and the defense sector, as well as continue using Systematic Investment Plans (SIPs) even during market downturns. Experts also emphasized the importance of understanding risks before investing in new instruments, such as Specialized Investment Funds (SIFs).
A three-session webinar organized by Business Standard Hindi was dedicated to analyzing the prospects and investment opportunities in gold, stocks, and mutual funds. Participants agree that India's long-term growth prospects remain robust, with opportunities expected in sectors such as energy, artificial intelligence, manufacturing, renewable energy, financial services, and consumption.
How SIPs have changed investor behavior
The first session focused on mutual funds. Venkat N Chalasaney, CEO of the Association of Mutual Funds in India (AMFI), stated that SIPs have played a key role in changing investor behavior, encouraging regular and disciplined investments. He noted that during market declines, investors can acquire more units at lower prices.
Chalasaney also reported that about 65 percent of India's population is under 35 years old, which could support consumption growth. Despite numerous challenges, the country's economic growth rate has held steady at 7.2–7.3 percent. He urged investors to remain confident in India's long-term growth trajectory.
Rahul Singh, Chief Equity Investment Officer at Tata Mutual Fund, pointed to signs of improving profit metrics in large-cap companies. Although profit growth in such companies was weak for some time, an acceleration is now expected, which could positively impact the market.
Jitendra Shriram, Senior Equity Fund Manager at Baroda BNP Paribas Mutual Fund, added that consistent participation from domestic investors has helped maintain market liquidity and partially offset the impact of foreign investor selling. He also noted that the profits of small companies have recovered well in recent years.
Large-cap stocks can provide growth
The second session focused on the stock market. Harendra Kumar, Managing Director at Elara Securities, forecasts positive market prospects for the next three years. In the long term, large-cap stocks could potentially yield around 12 percent annually.
Kumar suggested that with the return of foreign investors to the market, large private banks, as well as stocks in the automotive, discretionary consumer goods, internet, and energy sectors, could benefit. He advised that holding a combination of large and mid-cap stocks could constitute approximately 75–80 percent of an equity portfolio.
Jinesh Desai, Chief Executive Officer for Institutional Equities at Centrum Broking, believes that large-cap stocks look attractive from a valuation perspective. The average valuation of the Nifty index over the last ten years was around 20 times earnings, whereas it currently stands at about 18 times. According to Desai, this creates opportunities for long-term investors in high-quality, large-cap stocks.
New Samvat may offer an opportunity to buy gold
The third session was dedicated to gold. Apoorva Shet from Samco Securities indicated that the level of $4000 per ounce provides strong support for gold in the international market. He predicts that in the medium term, gold could reach $4600 per ounce, with potentially even more significant growth possible over the next three to five years.
The recent decline in gold prices created a buying opportunity for new investors, according to Shet. However, investors who already hold a sufficient share of gold in their portfolio might find stocks more appealing right now. He recommended that gold should constitute 15–20 percent of the portfolio. Investors without gold exposure can take advantage of the current correction to begin purchases, while those with adequate metal allocation may seek better opportunities in equities.
Shet also warned investors about the need to consider the higher volatility and risk associated with investing in silver.



