Key driver of returns is asset allocation, not market timing: Ajit Deshmukh

US markets have seen significant corrections in the last 18 months and 10-15% allocation to US equities in a staggered way can be a prudent diversification, says Ajit Deshmukh, Equirus Wealth MD

Equity markets across the globe have been volatile thus far in calendar year 2023 (CY23) amid higher interest rates, sticky inflation and growing worries about a recession. In a conversation, AJIT DESHMUKH, managing director at Equirus Wealth tells Harshita Singh that investors should allocate long-term capital across different asset classes instead of timing the market to drive returns. Edited excerpts:

How do you see the remaining part of CY23 shaping up for different asset classes - equity, debt, gold, real estate etc?

Equities have been sideways for the last 18 months and the markets are consolidating after witnessing a vertical