Sir explained in macro during inflation there is a risk off environmental and we should invest in junk bonds cyclical stocks and small cap stocks moso So in mutual funds i don’t see that changes in asset allocation during inflation or recession
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hey bud ! sir said ” during inflation there is “risk on ” environment and during risk on environment investment in equity better than bonds ,however one should not invest all in one basket so some percentage of investment should also be done in bonds ! Vice versa
Environment Investment Types/Category
Risk on (Infalation) Equity (preferable) 1. small cap 2. Cyclic stocks better than defensive stocks
. Bonds 1. Junk Bonds
. 2. corporate Bonds
. 3. Govt. Bonds
Risk off (Recession) Bonds (Preferable) 1. Govt. Bonds
. 2. Corporate Bonds
. 3. Junk Bonds
. Equity 1. Large cap /Blue chip stocks preferred over small cap
. 2. Defensive stocks better than Cyclic Stocks !
Bud ! How one prefers to invest in junk bonds when he/she doesn’t wants to take risk !!! Investing in junk bond is already risky and already fellow doesn’t want to take risk …….there’s no point in investing in junk bonds ! ( intuitive explanation)
definitely Sanjay Sir didn’t said to invest in junk bonds in risk off environment !
Instead you should listen accurately !!!
Risk off environment (i.e. bure din……isliye risk nahi lenge )
Risk on environment (i.e. acche din…….isliye risk le sakte hain )
hope you got it !