Quant Mutual Fund has cautioned investors that gold may have peaked for now and could see a near-term correction of 12-15% in dollar terms over the next two months. Despite this, the fund remains constructive on gold for the medium and long term, recommending that investors allocate a meaningful portion of their portfolio to precious metals.
The fund also noted that June is typically bullish for crude oil, and while the downside appears limited, oil prices could rise by 10-12%, especially if emerging market (EM) risk-off intensifies.
On cryptocurrencies, the fund sees Bitcoin as an attractive option for high-risk global investors, though it expects short-term pressure due to tightening liquidity worldwide. However, medium and long-term prospects for crypto remain positive, driven by continued high-risk appetite among younger investors.
Regarding the U.S. dollar (DXY index), after a significant correction since January, the fund anticipates a potential pullback rally from current levels.
In global equities, Quant Mutual Fund expects the medium-term outlook to remain challenging, particularly for U.S. stocks, despite a recent near-term pullback. The fund believes global equity is currently in a consolidation phase rather than a bear market, supported by relatively strong global liquidity.
Domestically, the fund has deployed cash into selected mid and small caps but keeps the portfolio tilted toward large caps with healthy liquidity. It highlights buying opportunities in sectors such as PSU, Infrastructure, Hotels & Hospitality, Pharmaceuticals, Materials, Retail, and Telecom.
The fund reiterates a positive outlook for Indian equities, supported by predictive analytics indicating the corrective phase is nearing completion. It expects emerging markets (EM), including India, to outperform developed markets (DM) in the medium term amid deteriorating global liquidity and ongoing recession risks in DM economies.
Quant Mutual Fund also emphasized India’s strong position to benefit from global supply chain realignments due to rising U.S. tariffs on China, potential U.S.-India trade progress, and its large domestic market akin to China’s in the mid-2000s.
The fund noted a breakdown in traditional relationships between asset classes such as gold, currencies, yields, and real interest rates. It observes diminishing influence of global central banks in managing rising debt and inflation, despite expanding global capital markets.
Finally, Quant Mutual Fund announced it is the first SEBI-licensed manager of Specialized Investment Funds (SIFs) offering long-short strategies across equity, debt, and hybrid categories. These products target sophisticated investors with higher risk tolerance. The fund plans to launch dedicated branding, websites, and educational efforts for SIFs in the coming months.
