With Indian markets near long-term highs, a flexible asset allocation strategy is crucial for better risk-adjusted returns.

Edited excerpts from a chat with the fund manager:

How different is Active Asset Allocator Long-Short strategy from your existing Balanced Advantage Fund or Multi-Asset Fund, which you already co-manage?

At a time when Indian markets are trading near elevated long-term averages, how are you reading the current risk-reward equation across equities, debt and commodities? Which asset class currently looks most attractive from a three-year perspective?

Your framework talks about “being invested the right way at the right time.” What are the biggest macro variables driving your current asset allocation stance?

Commodities are emerging as a bigger allocation theme globally. Do you believe Indian investors remain structurally underallocated to commodities if we exclude household gold?

How do you see gold behaving if global growth weakens but inflation remains sticky?

What role do InvITs play in the portfolio construction process, especially in a rising interest rate environment?

Do you think that midcaps are now in a sweet spot and, barring a few pockets, unimpacted by the geopolitical conflict? In your Large and Midcap Fund, how overweight are you on midcaps?

Within the midcap universe, which sectors do you like from a 3-5 year perspective and why?