JioBlackRock MF sees value in equities after correction, favours target maturity funds for debt investors
JioBlackRock Mutual Fund sees a more attractive risk-reward equation in equities after the recent market correction but cautions that a sustained recovery remains uncertain. In debt, it favours target maturity funds for investors with defined horizons, while recommending cash and money market funds for those with near-term liquidity needs.
JioBlackRock Mutual Fund sees potential in equities after recent market correction, but remains cautious about sustained recovery. The fund favours target maturity funds for fixed income investors with defined horizons, and cash/money market funds for those needing liquidity. In September 2026, Indian markets faced pressure due to rising oil prices, geopolitical tensions, higher bond yields, and FII selling.
Despite positive domestic indicators, global sentiment overshadowed them. The Nifty 50 fell 5.5%, while Nifty 500 declined 5.85%. The correction has brought the market to a more attractive risk-reward level, with technical support around 200-week EMA and a support cluster between 22,000-22,400. However, a sustained recovery is uncertain due to challenging macroeconomic conditions.
In fixed income, JioBlackRock Mutual Fund expects elevated bond yields to persist due to inflation, crude prices, and RBI policy expectations. The 10-year government security yield rose from 6.9% to above 7.15%. Investors should consider duration timing low-conviction and lock in elevated yields using target maturity funds.
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