Vetri Subramaniam's key for investors to rest easy amid market fluctuations
The CIO of UTI AMC says investors should be guided by the history of volatility in markets. Drawdowns of 10% once a year, 10-15% once every three years and more than that once every 5-10 years are very common.
Vetri Subramaniam, CIO of UTI AMC, says investors should not be scared of the current volatility in Indian equity market as it is very much par for the course.
He advised investors to be guided by the history of volatility in markets, noting that drawdowns of 10% once a year, 10-15% once every three years, and larger than that once every 5-10 years are very common.
"A combination of having asset allocation and rebalancing the portfolio at some frequency is the key to being able to sleep well at night despite volatility," Subramaniam said.
He advises that while investors must have an asset allocation framework, they should not decide the allocation based on the performance of a particular asset class over just one year.
“It is the set of asset classes which over a 10-20-year period will help you achieve your financial goals,” he said.
Harsha Upadhyaya, President and CIO of Kotak Mahindra AMC, agrees with Subramaniam's views. In a recent chat with CNBC-TV18, Upadhyaya said investors who maintain a well-diversified portfolio with fundamentally strong businesses will be able to safely wade through the current market volatility.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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