Kotak AMC MD Nilesh Shah Advises To Invest In Reasonably Valued Companies Amid Geopolitical Tensions

We should focus on building portfolio resilient to geopolitical situations, said Kotak Mahindra Asset Management Company's Managing Director Nilesh Shah.

"Mid cap and small cap are growing at a faster pace, while large cap is growing at a faster pace, but there is more stability. Hence, our view is to be marginally overweight large cap and marginally underweight mid and small cap," he told NDTV Profit.

Shah advised investors to keep some "dry powder" keeping in mind the geopolitical situation, thereby one can invest during a corrective phase.

He highlighted that by focusing on quality management and diversified portfolio and reasonable valuation, investors would be able to build some immunity vis-a-vis the geopolitical situation.

Kotak Mahindra AMC's Managing Director highlighted that one of the important things is to mange investment expectations. "One has to moderate their return expectations or increase their risk appetite to invest in market today," he said.

Shah advised to go for reasonably valued companies at this time. "Today, Banking and Financial Services, Chemicals, Consumer Discretionary space are the sectors where the opportunities are far more present. Defence is another sector, where opportunities are less present," he said.

Shah's advice to new parents is to take risks when you can afford it.

He warned new parents to not put lumpsum money. "Inculcate the habit of regular investment and breakdown your child's kitty into various parts-study, inheritance etc. Whenever you are making the investment, do write down its purpose—linking investment with purpose will help override volatility," he said.

"I had opened PPF account for behalf of my daughters, where they contribute. But, ideally I should have just put them into equity like saving scheme and they would have made far more money," Shah spoke about the mistake he made, that the new parents should avoid.