Avoid big bets, protect portfolios amid geopolitical tensions: Analysts

Recent declines in Indian equity markets have prompted wealth advisors to shift their focus from pursuing high returns to safeguarding investment portfolios. With geopolitical tensions creating uncertainty, experts recommend a cautious approach for investors. The Nifty 50 index has fallen 7% from its peak in early February, reflecting the broader market's vulnerability. Advisors like Juzer Gabajiwala from Ventura Securities urge investors to adopt a defensive strategy rather than making aggressive equity investments. The duration of geopolitical conflicts and their potential effects on oil prices remain unpredictable, making it essential for investors to reassess their portfolios. Financial planners also highlight the importance of liquidity needs, advising those requiring cash in the short term to consider exiting equities now. While some see the market correction as a buying opportunity, they stress the need for disciplined asset allocation. Nirav Karkera from Fisdom suggests that investors should gradually increase their exposure to large-cap funds over the next few months. Diversification is emphasized as a key strategy for mitigating risks, with debt and gold serving as stabilizing assets during volatile periods. Overall, the current market environment calls for careful evaluation and strategic adjustments in investment approaches.