MOPW Recommends Hybrid Investment Strategy for H1CY25 Amid Market Uncertainty

Mumbai: Motilal Oswal Private Wealth (MOPW) advises a hybrid investment approach for the first half of 2025 due to anticipated volatility in the markets, driven by various global and domestic events. The new U.S. administration’s policies, China’s trade responses, and the upcoming Indian Union budget are expected to create short-term uncertainty. However, MOPW predicts that market volatility will ease as these events unfold and clarity emerges in the latter half of the year.

Despite the slowdown in GDP growth, MOPW remains optimistic about India's long-term prospects, citing its macroeconomic stability and strong foreign exchange reserves. The firm anticipates GDP growth will improve after the modest performance seen in Q2 FY25.

Ashish Shanker, MD & CEO of MOPW, emphasized the importance of risk management and asset allocation in navigating the expected uncertainties. The firm suggests that investors consider increasing equity allocations through hybrid funds and staggered investments in equity-oriented strategies, particularly if meaningful market corrections occur.

Additionally, MOPW recommends focusing on high-yield fixed income strategies, maintaining a balanced gold allocation, and exploring real estate opportunities, particularly in the commercial sector, where vacancy rates have decreased significantly.

Investors are encouraged to carefully assess these strategies in the context of current market conditions.