'Valuations in the pharma sector are not as attractive as last year'

An ideal portfolio in current market circumstances should have an optimum mix of equity, debt and gold

Rising cases and lockdowns could result into small earnings downgrades across domestic cyclical sectors. Markets, says AMIT B GANATRA, senior fund manager, HDFC AMC in an interview with Chirinjibi Thapa, are in the process of crystalising and discounting FY22 earnings expectation. Edited excerpts:

How should investors approach markets now?

India’s earnings cycle has turned around positively in fiscal 2020-21 (FY21). However, markets are bound to be volatile due to both domestic as well as global factors. Hence, if an investor wants to participate in equities but does not want to bear higher volatility, they could consider investing in assets with low correlation/negative