Expert View: Geojit Financial's Rahul Roy Chowdhury on Top Risks Facing High-Net-Worth Investors' Portfolios

Market Volatility: A Call to Review and Rebalance

The Indian stock market has been experiencing heightened volatility, impacting investor confidence. Rahul Roy Chowdhury, CEO of Private Wealth Services at Geojit Financial Services, emphasizes the importance of maintaining disciplined asset allocation and avoiding near-term market movements. In an interaction with Mint, he offers insights on how to add commodities to a portfolio, avoid recency bias, and navigate stock market crashes.

The correction in broader Indian markets began around October 2025 and unfolded in phases, with volatility escalating into early 2026 and becoming quite sharp by March. Chowdhury notes that his team has been busy helping clients avoid making long-term decisions based on short-term anxiety. Geojit Private Wealth's engagement model is centered around reviewing, rebalancing, and communicating with rationale. A significant portion of these conversations has been reinforcing the importance of sticking to disciplined asset allocation and not deviating due to near-term market movements.

Concentration Risk: A Major Concern for HNI Investors

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The biggest risk for HNI investors today is concentration disguised as conviction. Recency bias often arises through recent winners, making it seem smarter than it really is. Geojit Private Wealth runs a portfolio review matrix that separates concentration, liquidity, valuation, and goal alignment before making allocation changes. Trimming winners can feel painful, as narratives often look strongest near the point when sizing discipline matters most.

Has the current stock market environment influenced how HNIs are allocating money recently? Yes, mainly through pacing rather than panic. When valuations were stretched, Geojit Private Wealth slowed entry; now that the risk-reward balance is better, they are more willing to add selectively. This is a better entry environment than a year ago, but it is not an all-clear signal.

Comparison of Stock Market Returns

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The stock market returns have been nil for almost two years. Chowdhury notes that markets move in cycles, and during consolidation phases, dispersion between index returns and individual stocks tends to widen, creating opportunities for skilled managers to generate alpha. This is typically when disciplined stock selection and risk management add value over passive exposure.

Allocating to Commodities

For most investors, commodities should diversify and hedge a portfolio—not become the portfolio. Direct exposure to oil is not practical for most investors. For precious metals like gold and silver, Chowdhury generally prefers multi-asset funds and ETFs, as they keep the allocation disciplined within a larger strategy. Typically, keeping about 5–10% of the portfolio in precious metals, depending on a client's risk tolerance, works well.

Navigating Market Drawdowns

Market pullbacks are part of the deal: you're likely to see a 10% dip most years, a 20% drop every five years or so, and a major 30–50% plunge at least once a decade. It's simply how markets behave. When a "black swan" event hits, the worst thing an investor can do is react emotionally, panic, and sell. History has repeatedly shown that the most important move is to stay the course. In difficult markets, process matters: Geojit Private Wealth communicates early, not after the damage is done.

Global Diversification

Globally, brokerages have downgraded Indian stock market prospects for most retail investors with India-focused portfolios. Chowdhury recommends that investors introduce foreign stocks, allocating about 15–20% of a portfolio to global equities (developed and emerging) as a core part of a long-term strategy. Global diversification is not a verdict against India; it is simply good portfolio hygiene.

Current View on Asset Allocation

Asset allocation should begin with goals, but if Chowdhury had to summarize the current market stance in one line, it would be this: quality equity, useful carry in debt, market-neutral strategies, and alternatives used selectively—not decoratively. Alternatives can improve resilience, but only if liquidity, fees, taxes, and transparency are fully understood. Ultimately, a balanced mix of domestic equity, global exposure, tax-efficient debt, and select alternatives is a good way to keep a portfolio resilient through any market cycle.