Investment advisory firm ASK Private Wealth has recommended a strategic shift in investor portfolios, advocating for an 'Overweight' position in equities and Infrastructure Investment Trusts (InvITs), while advising an 'Underweight' stance on gold and fixed income products.
Equities Preferred Amid Resilient Growth
The firm's outlook, released on November 3, 2026, highlights the robust performance of domestic growth indicators and sustained corporate earnings momentum observed in the latest quarter's results. ASK Private Wealth points to significant downside protection offered by strong domestic capital flows and current equity valuations, which have corrected closer to historical averages. The Nifty index, trading 14 percent below its peak, presents a margin of safety for investors, aligning with typical equity market corrections seen since the early 2000s.
ASK plans to identify opportunities across various sectors based on growth prospects, earnings delivery, and valuation comfort, with financials remaining a preferred sector. However, the firm advises caution on themes that have experienced rapid, sharp gains over short periods.
Gold's Safe-Haven Appeal Diminishes
Conversely, gold is expected to underperform, particularly in an environment marked by rising interest rates. ASK noted that while gold delivered strong returns over the past two years due to central bank buying, lower interest rate expectations, and geopolitical uncertainties, its volatility has recently increased. This heightened volatility, coupled with a weakening correlation to other asset classes, has diminished its traditional role as a reliable safe haven and predictive asset. Regulatory restrictions in the domestic market are also cited as a contributing factor to its 'Underweight' rating.
InvITs and Fixed Income Outlook
Beyond equities and gold, ASK Private Wealth has turned 'Overweight' on InvITs, recognizing their ability to navigate the current interest rate cycle more effectively. In contrast, fixed income products are rated 'Underweight'. This decision stems from rising inflation risks, increased fiscal pressures, and the expectation of elevated global yields, all of which suggest tighter rates ahead and have already led to an upward shift in the yield curve.
"Domestic economy amidst all these show strong resilience as seen from various leading indicators. Corporate performance remains robust from the early results trend of the current quarter. Domestic flows have reached new high providing significant downside protection amidst selling pressures from FIIs. Valuations too have corrected to their long-term average level adding significant margin of safety," stated ASK Private Wealth.
Investors are encouraged to consult with qualified financial advisors before making any investment decisions, as market conditions are subject to change.