Nivesh Mantra: Balanced funds and multiasset funds are useful tools for the low-cost market

Whether small- or mid-cap, their current valuation in the pricey market is rather high. There isn't much room for expansion in large caps. Multi-asset funds and balanced advantage can be wise investment choices in this kind of situation. Ajit Singh's report tells the complete mathematics of this-

If we look at the stock market at this time, now is the time for decline due to expensive valuations. The further direction of the market will be determined by valuation de-rating and earnings growth. If seen from a sector point of view, the biggest investment opportunity is seen in private sector banks. Shares of some good banks are trading at valuations lower than the long-term average. There doesn't seem to be any fundamental reason to trade at these valuations. These banks also have a positive outlook on consumer services. Due to weak demand, the shares remained at good valuations. In such a situation, whenever the consumption of India's middle class increases, there will be strong demand in these sectors.

The field of information technology (IT) also seems appealing. During a period of elevated valuations, hybrid funds—particularly Balanced Advantage funds and multi-asset funds—represent attractive investments. Putting money into these funds will shield you from market losses. Additionally, as valuations improve, equity investments will automatically rise. You can invest in a large cap in such a scenario.