Groww MF Chief Backs Multicap Strategies Amid Oil Shock Concerns

Anupam Tiwari, the equity chief at Groww Mutual Fund, has signaled a preference for multicap investment strategies in the current market environment. According to reports, Tiwari warns of a potential oil shock, suggesting investors should prepare for volatility in energy-related sectors. His assessment indicates that a multicap approach combined with bottom-up investing methodology is well-suited to navigate present market conditions. Tiwari notes that valuations in mid-cap and small-cap segments have shown improvement, creating a more favorable backdrop for active stock selection. This valuation correction makes traditional fundamental analysis and direct stock picking more viable compared to periods when valuations were stretched. Among the sectors Tiwari highlights as offering opportunities are financials, industrials, automobiles, and specialty chemicals, suggesting these areas may offer attractive risk-reward propositions for investors.

The commentary reflects broader market sentiment around portfolio construction in uncertain times. When large-cap equities trade at demanding valuations, investors increasingly look to mid and small-cap segments for better entry points and growth potential. A multicap strategy allows portfolio managers to allocate across the entire market capitalization spectrum while maintaining diversification. The emphasis on bottom-up investing—selecting individual stocks based on company fundamentals rather than broad market trends—becomes particularly relevant when valuations are disparate across market segments. Macro concerns like potential oil shocks make sector selection critical; financials and industrials historically benefit from certain commodity price movements, while specialty chemicals may offer defensive characteristics. For retail investors tracking Indian equity markets, this perspective suggests a more selective, stock-specific approach may outperform broad-based index allocations in the near term.

Source: Markets-Economic Times