PremiumNikhil Kamath, co-founder Zerodha and True Beacon expects the equity market to stay volatile in the coming days and he is taking a conservative approach while managing his personal portfolio with only 40 percent of the total portfolio invested in equity.
"On a broader portfolio level, I am about 40% equity and 60% debt, which for me is probably as conservative as I ever get," Kamath said in an interview to Mint.
He feels at 21-22 times the one-year forward earnings, the market is expensive, especially given the inflation and growth rate.
Globally, the central banks are trying to fight the inflation, while avoiding a hard landing.
Some of the other challenges faced by global investors are impact of Russia-Ukraine war on on commodity prices, high inflation, slowing growth rate and a potentially looming slowdown.
The Indian market has been in an uptrend for last 8 days expect for December 2, when it consolidated a bit.
The benchmark indices - Sensex and Nifty - surged to record high levels during the week as foreign institutional investors (FIIs) doubled down on Indian shares in November 2022.
For someone who wants to invest ₹1 lakh in Indian market today, Kamath advised him/her to diversify. "Build a portfolio of five to six stocks. If it's the only one lakh rupees that that person has, I would say don't buy stocks for the entire one lakh, buy some debt, buy some gold," he said.
Within equity market, he advised sticking to largecaps and bluechip companies.