Fed up with market shocks? Here is Kotak MF’s formula to stay resilient

With global markets rattled by geopolitical friction and unpredictable oil prices, keeping your portfolio steady feels tougher than ever. In this exclusive conversation, Devender Singhal, Fund Manager at Kotak Mutual Fund, explains how a disciplined multi-asset strategy takes the emotion out of investing, shields your wealth from sudden shocks, and builds long-term resilience in 2026.

Edited excerpts from a chat:

What role can multi-asset allocation funds play during periods of elevated uncertainty and market volatility like the one we are going through today?
With West Asia tensions, oil volatility, and uneven global growth, multi-asset funds can play a useful role in helping investors stay invested through uncertainty. The idea is to balance risk across asset classes that do not move in the same direction all the time.

A lot of people who are already invested in equity funds often buy gold funds/ETFs separately. Where does multi-asset funds fit in one's portfolio?

Many investors already hold equity and gold separately, but a multi-asset fund offers a more disciplined and convenient way to bring those exposures together. It also takes care of rebalancing, which is important when markets become noisy and investor emotions tend to run high.

How do you see the interest rate cycle evolving globally and in India, and what implications could this have for asset allocation?
The global rate cycle is still evolving, but inflation risks have not gone away, especially if crude oil remains volatile. In this backdrop, a balanced asset allocation approach makes sense, with equity, debt, and gold all playing their respective roles.

How do you decide when to increase or reduce exposure to equities within a multi-asset framework?
Within a multi-asset framework, equity exposure is adjusted based on valuations, earnings visibility, and the broader macro backdrop. We continue to prefer quality businesses with strong balance sheets, pricing power, and the ability to weather external shocks.

What kind of equity sectors or themes are you constructive on despite concerns around the impact of soaring crude oil on the Indian economy?
Even with concerns around higher crude, we remain constructive on businesses with domestic demand visibility and limited sensitivity to input-cost pressure. Select financials, capital goods, and export-oriented names continue to offer opportunities, though valuation discipline remains key.

Ever since gold peaked out in the current cycle, how has your allocation changed? What is your current asset allocation mix in the fund?
Gold has once again shown why it remains an important part of a diversified portfolio. In periods of geopolitical stress and market uncertainty, it can help provide stability and act as a hedge against risk.

For investors entering markets at current levels, what would be the ideal portfolio strategy over a 3–5 year horizon?
For investors entering the market now, a phased approach is preferable to trying to time the perfect entry. Over a 3–5 year horizon, a diversified portfolio with systematic investing can help investors stay disciplined and participate in long-term wealth creation.

If you had to make the case for multi-asset investing in one line for 2026, what would it be?
In 2026, multi-asset investing is about staying invested, staying diversified, and staying resilient in a world that can be disrupted quickly by oil, policy, and geopolitics.