How did you navigate the volatility in March, and what are some of the key portfolio changes you had to make?
We tell investors that if they want to invest for one year or less, they should put their money in liquid funds, arbitrage funds, or money market funds, all suitable for short-term investments. For people with money for three to four years, we suggest hybrid funds that combine equity and debt. We ask them to invest only in pure equity funds if they have money for a period of more than five years. For anyone with a longer-term time horizon, all these things even out. Be it war, inflation, interest rates, lower GDP (gross domestic product) growth, or currency movement, they mean-revert over a period of time. Our focus has been on management quality, earning visibility, balance sheet strength, pricing power, and valuations. So, we have been using volatility to our advantage, deploying wherever we find opportunities and selling wherever the opportunity comes.
