Groww Mutual Fund’s equity head CA Anupam Tiwari has highlighted risks from a potential oil shock while recommending a multicap strategy paired with bottom-up stock selection. He noted that although valuations in certain segments remain a concern, the environment for active investing in mid- and small-caps has improved somewhat. Markets have begun recovering on hopes of reduced tensions in the Middle East, yet prolonged geopolitical instability could keep oil prices high for longer. Elevated energy costs may affect inflation, currency stability, corporate earnings and overall growth more than markets currently reflect. Valuation concerns have eased recently, with about one-third of mid-caps and nearly half of small-caps trading below their five-year averages. In this setting, a multicap approach can offer balanced exposure across market segments, combining stability from larger firms with growth potential from smaller ones. It also removes the need for investors to time allocation shifts between categories. Tiwari said multicap funds can serve as a core equity holding to participate in India’s long-term growth. The firm continues to favor sectors with resilient earnings, including financials, power transmission, renewables, defence, premium autos and specialty chemicals. Its QGaRP philosophy focuses on quality and growth at reasonable prices regardless of market-cap size.
