Quant Mutual Fund sees ideal time to rebalance portfolios, remains heavily deployed on attractive valuations

Synopsis

Quant Mutual Fund advises aggressive portfolio rebalancing amid improving market conditions, citing attractive valuations and strong liquidity. It favors large caps, selective mid and small caps, and sectors like energy, infrastructure, and financials, while remaining cautious on manufacturing uncertainties.

Quant Mutual Fund believes that the current period is the opportune moment for a forceful rebalancing of investment portfolios and the fund house continues to be largely deployed , capitalizing on attractive valuations in various pockets of the market.

In its monthly release, the fund house said that looking ahead, this phase could turn out to be one of the best times to invest since the 2020 pandemic. To make the most of it, investors should stay calm when markets are extremely high or low and seriously consider reshuffling their portfolios to take advantage of current opportunities.

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The portfolio of Quant Mutual Fund currently reflects the opportunistic stance as the fund house continues to be largely deployed, capitalizing on attractive valuations in various pockets of the market and at present the portfolio remains tilted towards large caps.

The fund house further mentioned that overall liquidity is good; select mid and small caps exposure has been increased in most of the equity and hybrid schemes. The fund house is underweight manufacturing companies because of uncertainty related to input costs and supply chains and continues to remain constructive on Energy, large Infrastructure, select NBFCs, Insurance, AMCs, select Private Sector Banks, Hotels, Pharmaceuticals, Telecom and Data-Center themes.

We continue to believe that the coming decade belongs to India, and we will become one of the key hubs and markets for global technology and AI and also the multiple downgrades by global financial houses confirms our message the bottom is in and the capitulation process is complete in Indian equities and in small caps, in particular, the monthly release said.

As India's nominal GDP expansion outpaces China’s by a factor of two, the nation’s equity markets continue to be viewed as a pre-eminent destination for international capital and the impending acceleration in the corporate earnings cycle, fortified by recent structural overhauls, shall catalyze the subsequent stage of market appreciation, Quant Mutual Fund believes.

While mentioning that the strategic trade alliance between India and the United States is currently being undervalued by global risk capital, the fund house believes that those who recognize its significance will comfortably outperform over a longer time horizon.

In last month’s factsheet, the fund house called out loud and clear that the worst is behind us and we should capitalize on the opportunity, and not to get capitulated at the bottom of the cycle. April did indeed turn out to be a better month for global equities.

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Sandeep Tandon led Quant Mutual Fund also said that Geopolitics aside, enormous developments in advanced technology continued to astound the world and Anthropic restricted the release of its agentic AI model, Claude Mythos, due to extreme cybersecurity risks involving autonomous exploitation of zero-day vulnerabilities.

This revealed an AI model capable of autonomously discovering and exploiting “Zero-day” vulnerabilities that had remained hidden from human experts for decades, it further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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