The Prime News Network: Understanding Market Dynamics and Corporate Capex
In a volatile market environment, companies often struggle to determine the best course of action for building capacity and managing investments. CIO of UTI AMC, Vetri Subramaniam, shares his insights on navigating these complexities.
Vetri Subramaniam emphasizes that market volatility is a natural part of economic cycles, and while April saw a period of uncertainty, it also marked a significant recovery. He notes that the sudden disruption in economic policies and practices has left many companies uncertain about their future strategies.
Vetri Subramaniam highlights that the current uncertainty is particularly affecting corporate capital expenditure (capex). He suggests that investors should proceed with caution and navigate carefully, focusing on hybrid funds that offer a balance between fixed income and equity investments.
Vetri Subramaniam also discusses the launch of the UTI Multicap Fund, a core diversified strategy that aims to provide long-term value to investors. He explains that this strategy is appropriate for investors looking to invest for the long term, not for short-term trading opportunities.
Vetri Subramaniam provides insights into the IT sector, noting that while it has faced challenges due to AI, companies that can pivot to upstream services may benefit. He also discusses the potential for IPOs and promoter stake sales to resume once the market stabilizes.
Overall, Vetri Subramaniam advises investors to remain cautious and consider hybrid funds for better risk management in the current uncertain market environment.
Reference : https://economictimes.indiatimes.com/markets/expert-view/hybrid-funds-the-way-forward-amid-soft-macros-and-valuation-reset-vetri-subramaniam/articleshow/120815468.cms
