2023 will be difficult for Indian equity market, says Invesco MF's Taher Badshah

He said the industry has been seeing some recovery as far as flows are concerned in 2023, "We are moving in reasonably cautiously. I do not see any hurry to get into the market in a big way except few pockets where declines are sharp."

According to him, the best equity investment strategy for the current market conditions is to slowly build a long portfolio. This approach involves making small and steady investments in a variety of stocks over a long period of time, rather than making large and sudden investments all at once. By doing so, investors can help to mitigate their risk exposure and potentially benefit from market upsides over the long term, he said.

However, Badshah also acknowledged the potential impact of interest rate hikes on the market, which could manifest itself at some point in 2023. Interest rates play a crucial role in the market's performance, as they impact the cost of borrowing and can influence the behaviour of investors. A hike in interest rates can lead to increased volatility in the market, as investors adjust their strategies and allocate their investments accordingly.

Despite the challenges that lie ahead, Badshah suggests that another 7-8 percent fall in the market could make it attractive again for investors. This means that if the market experiences a moderate downturn, it could create opportunities for savvy investors to buy stocks at discounted prices and potentially reap significant gains over the long term.