Women's Day: Giving her investment advice to women on International Women's Day, Sonam Srivastava, Founder and Fund Manager, Right Research PMS, told Moneycontrol that in a market that has seen a huge correction, women should focus on quality stocks with fundamentals. Women should focus on stocks with strong earnings, good balance sheets and right valuations instead of chasing short-term dips at this time.
Sonam says that a good and balanced portfolio at this time should have 20 per cent investment in the financial sector, 20 per cent in consumer goods, 20 per cent in manufacturing and capital expenditure related stocks, 15 per cent in technology stocks, 15 per cent in pharmaceuticals and 10 per cent in agrochemicals. Sonam believes that after falling more than 15 per cent from its high, the market has digested a significant part of its correction in the last four months, but this correction is not yet complete.
On this National Women’s Day, what’s your advice to women who want to become successful investors?
In response to this, Sonam said that women who want to succeed in investing should develop a disciplined approach. Invest for a fixed time period by setting goals keeping in mind your risk-taking ability. Start with goals like saving capital, growth or wealth creation and focus on developing basic knowledge of the markets. Research investment opportunities. Check the future outlook while investing. Do proper planning and diversify between equity, fixed income and even other alternative investment options if appropriate. Avoid taking emotional decisions while investing.
Keep reviewing your portfolio regularly. Rebalance when necessary to maintain the set allocation. Focus on long-term wealth creation rather than short-term profits. Keep in mind that the power of compounding yields better results. Networking with peers, joining investment clubs and seeking professional guidance helps. When challenges arise, learn from them and improve your strategy rather than reacting hastily.
If women want to invest their hard-earned money in a market that has fallen sharply since the end of September, which sectors would you suggest for their investment?
In response to this, Sonam said that the market has already seen a lot of correction. At this time, women investors should focus on quality stocks with strong fundamentals. Women should focus on stocks with strong earnings, good balance sheets and right valuations instead of chasing short-term dips. A good and balanced portfolio should have 20% investment in the financial sector, 20% in consumer goods, 20% in manufacturing and capital expenditure related stocks, 15% in technology stocks, 15% in pharmaceuticals and 10% in agrochemicals.
Which sectors will lead the next market rally?
Responding to this question, Sonam said that financial, consumption, manufacturing and technology stocks may lead the next market rally. The financial sector remains strong due to strong credit growth, stable NPAs and favorable economic conditions. Consumption-related stocks will benefit from rising disposable income and improving rural demand. Among these, FMCG, retail and auto sectors may see more growth. Manufacturing and especially capital goods and infrastructure companies will benefit from government policies like PLI and increasing domestic capital expenditure.
Technology, especially AI, cloud computing and cyber security, will continue to be the main drivers of growth in the IT services sector. In addition, green energy and defense sectors are emerging as long-term themes due to the increasing focus on self-reliance and sustainable development in India.
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