D D Sharma, Managing Director of MF King, said the current phase underlines the importance of disciplined, long-term investing rather than reacting to geopolitical shocks or commodity-led volatility.
He noted that episodes such as crude oil spikes and regional conflicts often trigger emotional responses in markets, but historically these tend to be temporary disruptions rather than structural changes to India’s equity growth story.
Sharma said investors frequently misread volatility as a signal to exit markets, even though past cycles show that recoveries typically follow once uncertainty stabilises. He added that this is why systematic investing through mutual funds and index funds remains relevant, particularly in phases when sentiment is driven more by headlines than fundamentals.
He said Nifty 50 index funds offer a simple way to gain diversified exposure to India’s top 50 companies, reducing the risks associated with timing the market. According to him, passive funds help investors stay invested through cycles of volatility while participating in long-term market growth.
Highlighting category performance, Sharma said the Nippon India Index Fund – Nifty 50 Plan stands out as a leading performer in the segment. He noted that the fund has an expense ratio of 0.07%, lower than the category range of 0.12% to 0.22%, making it one of the most cost-efficient options among Nifty 50 index funds.
He also pointed out that the Axis Nifty 50 Index Fund and the DSP Nifty 50 Index Fund have relatively higher expense ratios of 0.17% and 0.18% respectively, which can have an impact on long-term net returns. Sharma added that lower-cost passive investing structures tend to be more effective for wealth creation over time, especially in broadly rising markets.
On performance, he said the Nippon India index fund has delivered a 5-year rolling CAGR of around 18.38%, placing it among the stronger performers in the category. He added that such consistency reinforces the value of index-based investing for long-term investors.
Adding a broader perspective on volatility, PL Asset Management highlighted that a combination of risks—including higher crude oil prices, currency weakness, slowing global growth, tighter financial conditions, and supply chain disruptions—could collectively weigh on India’s growth trajectory.
In this backdrop, the firm suggested a selective and risk-aware approach to investing. It indicated a preference for large-cap allocations and factors such as value, quality, and low volatility, which may offer relatively better resilience in volatile phases.
On sector positioning, it pointed to domestically linked and cyclical themes such as industrials, autos, energy, metals, and PSU financials as better placed, while export-oriented sectors like IT may remain exposed to global demand fluctuations.
