Wealth managers are advising caution for first-time investors in equity markets. With the Nifty trading at a price-to-earnings ratio of 25.96 times, a premium of 27% to its 10-year historical average, investors would do better by putting money in dynamic equity funds, they said.
Such funds allocate less to equities when market valuations appear expensive, and increase allocation to equities when market valuations seem cheap.
