Sankaran Naren, CIO of ICICI Prudential Mutual Fund, advises investors to maintain asset allocation discipline in 2026, balancing equities, debt, gold, and REITs. He cautions against overvalued IPOs, stressing that only reasonably priced offerings will sustain the boom. Naren expects Indian equities to outperform global peers if U.S. markets correct.
As 2026 approaches, ICICI Prudential’s CIO S. Naren has outlined a pragmatic investment roadmap. He emphasizes that equity is not a low-risk asset, urging investors to diversify across debt, gold, and real estate investment trusts (REITs).
Naren believes that if global markets, particularly the U.S., face corrections, Indian equities are likely to perform better, supported by strong domestic fundamentals. On IPOs, he warns against repeating the mistakes of the 1990s boom, where overvaluation and speculative frenzy hurt portfolio quality. Instead, he suggests focusing on reasonably priced IPOs with sustainable business models.
Precious metals like gold and silver have delivered strong returns in 2025, but Naren advises caution against standalone bets, recommending they be part of a balanced portfolio.
🔍 Key Highlights / Major Takeaways
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Asset Allocation Discipline: Balance equities with debt, gold, and REITs.
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IPO Strategy: Invest only in reasonably priced offerings; avoid speculative overvaluation.
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Global Context: Indian equities may outperform if U.S. markets correct.
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Precious Metals: Gold and silver strong in 2025, but avoid concentrated exposure.
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Long-Term View: Maintain perspective, avoid reacting to short-term volatility.
Sources: The Financial Express (Q&A with S. Naren, Dec 30, 2025)