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Aditya Birla Sun Life Mutual Fund released its annual market outlook for 2024 ‘Stronger for Longer’ in which it says that large cap companies are reasonably valued compared to mid cap and small cap companies.
The report shows that large cap valuations are currently available at around 5% premium to their historical average, indicating that their valuations are reasonable. However, the fund house said that it remains structurally positive on the midcap and small cap space for the medium to long term.
In terms of sectors, the fund house believes that domestic manufacturing, discretionary consumption, banking and financial and digital/technology sectors will do well.
For fixed income funds, the fund house feels that investors should look at short-term funds, corporate bond funds and banking and PSU funds in 2024.
The fund house foresees that the 10-year g-sec will likely to be in the range of 6.75% to 7% in 2024.
Also, the report says that investors should also consider multi asset allocation funds with right mix of equity, bonds and gold as these funds offer a balanced risk reward.
