Investing in beaten-down sectors can help you profit from market downturn

One approach that can boost long-term profitability involves increasing equity allocation as the markets fall, and decreasing it as they rise, instead of adhering to a fixed allocation

Two fund houses—SBI Mutual Fund and DSP Investment Managers—recently opened their small-cap funds to lump-sum investments. In a recent interview to Business Standard, S Naren, executive director and chief investment officer, said that times like these are the best for investing in equities. “Currently, equity valuations are cheap and investor sentiment is that of panic. Historically, such times have proven to be attractive for long-term equity investing,” he said.     

With the major category indices (large to small-cap) down 26-31 per cent over the past month, equity investors are experiencing stomach-churning volatility. At the same time, India has gone