Kshitiz Mahajan, the Chief Executive Officer of Complete Circle Wealth, has given his list of mutual fund recommendations for investors who want to invest new money during the ongoing market volatility, while at the same time advising that the investment decisions should be based on the individual investor’s risk appetite and financial goals instead of being influenced by short-term price fluctuations of the market.
In a market conversation, Mahajan mentioned that despite the fact that the global equity markets have gained some strength after the recent sell-offs, it would be prudent for investors to evaluate their willingness to bear risk, the duration of their investment, and their financial goals before committing any funds.
“Market levels alone should not dictate investments. The right approach is to align funds with goals—whether they are three years, five years or over ten years away,” he said.
Mahajan explained that small-cap and mid-cap stocks have seen sharp corrections, but despite more reasonable valuations, they remain risky asset classes. Investors with long-term goals of 10 years or more may consider exposure to small and mid-cap-oriented funds, while those with 7 to 10-year goals should prefer focused or multi-cap funds.
For investors with five to seven years to invest, he recommended flexi-cap funds, while those with three to five years should consider balanced advantage or hybrid equity funds. For shorter horizons of less than three years, Mahajan advised sticking to corporate bond funds, gilt funds or short-term debt funds, highlighting that the benefit of recent rate cuts has not yet fully transmitted to bond yields.
“Young investors with a higher risk appetite can allocate 80–90 per cent to equities, but diversification across fund categories is essential,” he added, suggesting a mix of multi-cap, flexi-cap, large & mid-cap and hybrid funds. He also advised deploying lump-sum investments gradually through STPs over six to eight weeks.
Kshitiz Mahajan’s top 5 mutual fund picks
Mahajan shared the following fund choices for a well-balanced portfolio:
HDFC Short Term Debt Fund
Parag Parikh Flexi Cap Fund
Axis Large & Mid Cap Fund
Kotak Multicap Fund
ICICI Prudential Balanced Advantage Fund
According to Mahajan, this mixture makes it possible for investors to have a good mix of growth, stability, and tax efficiency, at the same time giving the fund managers the flexibility to adjust the allocations depending on the market situation.
He concluded his talk by recommending that investors be disciplined, diversified, and goal-focused, pointing out that a systematic approach to asset allocation remains the best way to navigate the volatile markets.