Buy the Blood Bath - Shift incremental moneys to agg funds I India AI by Nandan Nilekani

Worst Performers - Defence Funds ( -37%) , Nifty Media ( -34.5%) , Nifty High Media ( -30 %)

Best Performers – Nifty Financial Services ( -2%), Nifty Bank / Private Bank ( - 5.5%), Nifty Low Vol Index ( - 8%), Nifty Healthcare & Consumption

• As was expected the break of the crucial 22,800 Nifty level led to a further slide as small caps continued to lead the carnage.

• As we were reiterating last year about why rebalancing to reduce equities is important, now we are on the other end of the spectrum where rewards to rebalancing into equities should bear good fruit over the next few years.

• US economic data worries led to a fall in US markets as well.

• Bitcoin has also crashed down to around 82,000 USD.

• We are at another support level now but without hazarding any guesses, its best to view (as continuously reiterated over the past many months) that this period will be a great opportunity to buy that has come after a long time (the first since the Covid crash in March 2020).

• We had been very high on defensive funds (NOT DEFENSE Funds 😉) like Parag Parikh, ICICI Balanced Adv, Eq Savings Fund, ICICI Low Vol Fund but now we wish to move gradually into more aggressive ones (We shall release a note through the week on funds that can be invested into to capitalise on this opportunity).

My post on how we have been consistently bang on, on the macro front (Apart from being ambivalent on interest rates, our calls have been bang on – Small Caps yes we were shouting from the rooftops since last 12 months – the crash was delayed but it did happen now).

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