Why Quant MF faltered and how to invest in 2025: Chirag Muni explains

Indian markets made a rough ride in 2025, with handy barely 4% while gold and silver rose. In the midst of global uncertainties – from rates to geopolitical tensions – his investors are looking for direction. Chirag Muni, executive director at Anand Rathi Wealth, shares why, despite the volatility, the current market setup can be a chance for long -term investors, and how investment funds and participation of the retail trade form the prospect.

Fragments:

V. Let’s start with the markets. 2025 has been difficult for Indian shares, while raw materials such as gold and silver have done well. What is your opinion about Sesex and Nifty?

Chirag Muni: As you rightly said, worldwide uncertainties – Tariffs, geopolitical tensions and wars – have kept markets on. Gold and silver have performed well because they are driven assets by sentiment. Goud demand rises in uncertain times, where central banks such as India and China buy to diversify the dollar. Silver’s question is partly industrial, for EVs, solar panels and semiconductors. Equiteiten, however, deliver better in the long term historically. For a horizon of five years, Nifty has given more than 10% efficiency 82% of the time, while gold and silver vary between 40-50%. Despite the worldwide uncertainties, the Indian market has filled itself. From a long -term perspective, this offers a chance instead of a risk.

V. could the 100% rate of Trump on medicines influence with investment funds in the pharmaceutical sector?

Chirag: The rate mainly has an influence on brand and patented medicines, no generic drugs that form the most Indian export to exposure to the pharmaceutical fund to the US pharmaceutical fund, is around 8-9%, so the overall impact is limited. Specialist medicines may see any effect, but it is not a major care in the long term.

V. How should investors approach the rest of 2025?

Chirag: The market has undergone price and time corrections. From a peak of 26,000 last year to a low of 22,000, and now back to 25,000, it is an opportunity. Long-term investment is driven by macro factors and the foundations of India remain strong: GDP growth of approximately 6.5%, low inflation and interest rates have already been reduced by 100 BPS. The ratings are fair and the income is expected to return.

FIIs have sold from a short-term perspective, but Diis and Retail sips continue to offer liquidity. This makes it a favorable environment for investors with a horizon of 3-5 years. The forward PE of one year suggests that the market could reach 26,500-27,000 by the end of the year, which implies a potential return of 10-11%.

V. Quant funds are not performing well. What happens to Quant Mutual Funds?

Chirag: Quant faced challenges last year due to legal investigations and market conditions, which limited the flexibility of the fund manager. However, negative news is usually deleted and recent performance has improved. Quantcap in particular shows a strong recovery because of the flexible, data -driven investment approach.

V. For long -term investors, how should they approach the market?

Chirag: Avoid chasing themes or timing the market. Focus on diversified funds:

• 55–60% Largecap
• 20–25% MIDCAP
• 15-20% Smallcap

Funds To consider are DSP Large & Midcap, Kotak MidCap Fund, Invesco Smallcap, HDFC Flexicap and Icici Prudential Focused Equity. A basket of these four to five funds, with a horizon of 4-5 years, offers diversification and long-term growth potential. Place meat investments are great after a market correction, because the short -term volatility will be smoothed over time.

Indemnification: Recommendations, suggestions, views and opinions given by the experts/brokers do not represent the opinion of economic times.