Is it the right time to invest in IT stocks, what is your outlook?
– Manas, Chennai
The Indian IT sector faces near-term headwinds from AI-driven automation, US tariffs, strong US jobs data delaying Fed rate cuts, weak spending and muted FY27-28 earnings growth. At nearly 20x forward P/E, valuations appear elevated given the subdued outlook. AI shortens project timelines, automates routine tasks, and drives outcome-based pricing, likely triggering layoffs in low-skill areas while challenging headcount models.
In long term, AI developments are encouraging. These solutions are expected to be incorporated into both existing and new projects, which should help ease concerns around long term business sustainability. Some uncertainties persist—particularly regarding how deal sizes and pricing may evolve, and the net impact on margins once employee cost efficiencies and productivity gains are balanced out. The present environment is offering opportunities for long term investors to re-enter the space, as more clarity is likely to emerge over the short to medium term.
I would like to know if this is the right time to invest in Gold.
– Dany, Kottayam
Gold prices have risen amid Trump’s tariff turmoil and uncertainty surrounding their legality. Even if the Supreme Court views the tariffs as invalid, ongoing trade tensions may still pressure the US dollar and support bullion. Beyond tariffs, factors such as centralbank buying, expectations of lower US interest rates, persistent geopolitical risks, and slower global growth could continue to underpin gold in the long run, keeping its overall outlook constructive.
I have read about specialised investment fund. I am keen to invest Rs 10 lakh in SIF. Please suggest best SIF and important things to consider?
– Raghuvaran, Coimbatore
Specialised Investment Funds (SIF) is a latest product category approved by SEBI. It aims to bridge the gap between mass market mutual funds and high-ticket options like PMS and AIFs. SIFs are professionally managed and follow strict rules so that investors stay protected. They aim to give better returns by tapping into areas that need expert knowledge. SIFs can invest in varied asset classes / instruments like stocks, bonds, derivatives, etc. Some of the AMCs like SBI, ICICI, Edelweiss, ITI, Tata have launched SIFs and some more are in pipeline for getting the required regulatory approval. Since AMCs have recently launched the SIFs, it will take some time for us to track the performance of the funds and understand the same in detail.
In the present volatile market, should I invest lumpsum or via SIP to make the most of the gains?
For longterm investors, a systematic investment plan is more effective than a lumpsum approach. SIPs help average out costs and reduce the impact of volatility, while allowing additional purchases during market corrections. This strategy builds discipline, lowers risk, and enhances the potential for better returns over time.
