Investors could continue to allocate to equity funds, says UTI AMC CIO

Investors should be guided by valuations in determining risk and allocation rather than events that cannot be predicted, said Vetri Subramaniam

After sharp pull-back in markets from their recent lows, VETRI SUBRAMANIAM, chief investment officer, UTI Asset Management Company, in conversation with Puneet Wadhwa says he recommends investing in a staggered manner, given that markets are dealing with probabilities (not certainties). Edited excerpts:

How vulnerable are global equity markets to a meaningful correction?

The thing about geopolitical risk is that you never know when and where it might erupt or spread. It is best for investors to presume that such threats will appear intermittently.

The commodity price spike has receded, and the narrative has pivoted to the threat