What kind of investor queries are you receiving in the current volatile market environment?
Most queries revolve around what investors should do amid the uncertainty. Our role is less about predicting outcomes and more about managing investor behaviour — ensuring clients don’t panic and remain allied with their asset allocation.
The most important thing is to avoid panic or impulsive decisions. Investors should not attempt to time the market in such situations. One key lesson from past cycles is that during sustained bull runs, many investors overestimate their abilities. They move away from professional advice and build concentrated portfolios, often in smallcap stocks.
But when corrections of 30-40 per cent occur, the importance of risk management becomes clear. Risk management is the most fundamental principle of investing. If you manage risk well, compounding may take care of itself over time. But if you speculate, use excessive leverage, or try to outsmart the market — especially through derivatives — one-off events like these can wipe out capital.
How do you compare the current situation with past crises like Covid-19?
During Covid-19, markets were down 20–25 per cent, and, for the first few months, there was complete uncertainty — no one knew what was going on. But as solutions began to emerge, the resilience and adaptability of mankind came into play.
The pandemic was unprecedented — entire economies were shut for months, and there were massive global supply-chain disruptions. Yet, within two years, markets were back at all-time highs. Since then, we’ve seen multiple geopolitical events, including the Russia-Ukraine war and tensions in West Asia, but markets have consistently shown the ability to recover.
The disruption we are seeing in oil is unique and probably hasn’t occurred at this scale before. Oil impacts almost every industry, both directly and indirectly, so it will create challenges. However, such disruptions tend to be temporary. Over three, six, or nine months, markets have historically stabilised and returned to normalcy.
How should investors approach opportunities during such corrections?
For investors with the right temperament, a staggered approach may be beneficial — deploying capital in phases, say 5–10 per cent at a time over a month or so, while allowing markets to stabilise. History shows that, in hindsight, these phases often turn out to be missed opportunities if not utilised.
How are you positioning portfolios amid this volatility?
Our portfolio positioning is guided by the stated investment objective. In equity strategies, we are maintaining a preference for largecap, high-quality names and reducing exposure to sectors likely to be impacted, such as energy.
In fixed income, we are evaluating opportunities in alternatives such as private credit, real estate funds, and arbitrage strategies. We are also assessing broader thematic trends, including developments in artificial intelligence (AI)-enabled infrastructure and data centres, and selectively deploying capital in line with the investment mandate.
How are clients reacting to the volatility?
It varies. Experienced investors who have seen multiple cycles are more willing to invest during downturns. Less experienced investors tend to remain cautious and avoid fresh commitments.
What opportunities are emerging in this environment?
AI-led themes, especially data centre, appear to be a key opportunity, covering companies across power, cooling, infrastructure, and analytics that benefit from AI-driven growth.
Is the data centre opportunity investable at scale?
We believe certain companies could benefit indirectly.
With multiple asset classes correcting, should allocation strategies be revisited?
Not necessarily. Recent movements in gold prices may be due to deleveraging and exchange-traded fund (ETF) outflows. In our view, investors should maintain an appropriate allocation to gold as a hedge and even add incrementally during corrections, similar to equities.
Has demand for global allocation increased?
Yes, over the past six months. However, we are maintaining exposure in line with product mandates and investor risk profiles, primarily through funds and ETFs rather than direct stocks. This exposure spans both developed and emerging markets.
What is driving the growth of the wealth management industry?
The expanding high-networth individual (HNI) base. India has around 600,000 HNIs, growing at 8–9 per cent, and the number of ultra-HNIs is also rising. While many new firms are entering the space, not all have sustainable business models, as competition is largely talent-driven and cost-intensive.
Are robo-advisory platforms disrupting the industry?
Not significantly at the HNI level. They are more relevant for mass affluent clients. For HNIs, human interaction remains critical, though AI is increasingly being used internally for analytics, reporting, and productivity.
What differentiates ASK Wealth in a crowded market?
We have over 40 years of experience across market cycles. We follow a disciplined investment philosophy, supported by a strong track record and risk management framework. We focus on building a sustainable, annuity-based business rather than pushing high-margin, high-risk products.
Is the industry moving towards advisory models?
Gradually, yes — especially for large-ticket clients and promoter deals. However, distribution still dominates for smaller portfolios.
 "Rajesh Saluja, Cofounder, CEO, & MD, ASK Private Wealth")