Whalesbook
Experts Chart Investment Course for 2026
Investors are looking towards 2026 with cautious optimism. After a year where Indian equities delivered steady but uninspiring returns, the primary question is how to best position portfolios. The Nifty saw a modest 10.7% gain in 2025, marking a decade of positive performance but showing a period of consolidation compared to recent strong rallies.
Amidst this backdrop, Feroze Azeez, Joint CEO at Anand Rathi Wealth, and Mohit Gang, Co-Founder & CEO of Moneyfront, shared their insights on asset allocation for medium-risk investors in 2026. Both experts converge on the view that disciplined asset allocation will be key, potentially outperforming aggressive stock picking.
Equity Remains Central to Portfolios
Despite a long bull run, both Azeez and Gang maintain that equities should form the core of any long-term investment strategy. Azeez suggests that long-term investors should retain approximately 65% equity exposure, with the flexibility to increase it to 80% based on risk appetite and time horizon. He specifically advocates for mutual funds over direct stock investments to mitigate volatility while capturing equity upside.
Gang adopts a more nuanced approach, dividing portfolios into an 80% strategic, long-term allocation and a 20% tactical allocation for opportunistic plays. Equities are the foundation of the strategic portion, diversified across geographies and market segments. The consensus is clear: exiting equities after a slower year like 2025 could be detrimental for investors with multi-year horizons.
Divergent Portfolio Philosophies
Feroze Azeez's strategy leans towards a broad equity-led approach, emphasizing diversification across market capitalizations. His recommended breakdown is 55% large caps, 23% mid-caps, and 22% small-caps. Azeez remains bullish on small caps, citing underlying earnings growth masked by index churn, estimating FY25 earnings growth near 18% and long-term potential over 30%. He suggests using funds like Invesco India Largecap Fund, Kotak Midcap Fund, and HDFC Small Cap Fund.
Mohit Gang presents a globally diversified, allocation-first strategy: 50% domestic equities, 20% international equities, 10% fixed income, and 20% commodities like gold and silver. Gang views international equities as a crucial core allocation, stressing diversification beyond single markets. Domestically, he expresses caution on small caps due to valuation concerns, preferring large and mid-caps for the next market phase. He favors passive strategies for large caps and active management for mid-caps and blended categories, highlighting UTI Nifty Next 50 and Edelweiss Gold and Silver Fund.
Rethinking Debt Allocation: The Rise of Gold
A significant shared theme is the re-evaluation of traditional debt allocation. Azeez is bearish on conventional debt, proposing that half of a typical debt allocation be shifted to gold, preferably via gold funds. Gang allocates a substantial 20% of his portfolio to commodities, split between gold and silver, as a hedge against macro uncertainty and for enhanced diversification.
Deployment and Discipline
In a market lacking a clear trend, both experts advise against large lump-sum investments. Gang recommends staggered deployment over approximately six months to average into positions and monitor market momentum. The overarching message for 2026 is to prioritize asset allocation, diversification, and risk alignment over chasing past performance, stressing that discipline and patience may prove more valuable than bold, speculative bets.
Impact
This expert guidance could lead to a significant shift in how Indian retail investors approach portfolio construction, particularly concerning the role of gold and international equities. It emphasizes a more structured, risk-managed approach, potentially reducing reliance on volatile direct stock picking and increasing the adoption of diversified mutual fund strategies. The shift away from traditional debt highlights a growing awareness of inflation and macro-economic risks. The advice encourages a long-term perspective, which could lead to more stable wealth creation for medium-risk investors. The impact rating is 7/10.
Difficult Terms Explained
- Asset Allocation: The strategy of distributing investment funds among different categories, such as stocks, bonds, and cash, to balance risk and reward.
- Equities: Investments in stocks or shares of companies, representing ownership.
- Nifty: A benchmark Indian stock market index representing the top 50 largest and most liquid Indian companies.
- Consolidation: A period in financial markets where prices trade within a narrow range, indicating a pause or lack of clear direction after a significant move.
- Mutual Funds: Investment vehicles that pool money from many investors to invest in securities like stocks, bonds, and money market instruments.
- ETFs (Exchange Traded Funds): Funds that hold assets like stocks, bonds, or commodities and trade on stock exchanges, similar to individual stocks.
- Commodities: Raw materials or primary agricultural products, such as gold, silver, oil, and wheat, that can be bought and sold.
- Fixed Income: Investments that provide a predictable stream of income, typically in the form of regular interest payments, such as bonds and government securities.
- Volatility: The degree of variation in trading price series over time, indicated by standard deviation or variance.
- Diversification: A strategy of investing in a variety of assets to reduce risk, based on the principle that a portfolio with different kinds of investments will, on average, yield higher long-term returns and lower the risk of any single investment.
- EPS (Earnings Per Share): A company's net profit divided by the number of common shares outstanding.
- Tactical Allocation: A short-term strategy of deviating from strategic asset allocation to exploit perceived market opportunities.
- Strategic Allocation: A long-term investment strategy that involves setting target allocations to various asset classes based on investor goals and risk tolerance.