Pace 360 exits Nifty, bets on Bank Nifty as valuations stay attractive
The move comes after the firm used the recent rally to cut equity holdings, while retaining conviction in banking stocks on the back of earnings strength and lower valuations.
- Aug 16, 2026,
- Updated Aug 16, 2026 3:00 PM IST
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360 said they have sharply reshaped equity book, cutting Nifty exposure to near-zero and shifting remaining market allocation decisively toward Bank Nifty, in a signal that the fund house sees better risk-reward in lenders than in the broader benchmark at current levels. The move comes after the firm used the recent rally to cut equity holdings, while retaining conviction in banking stocks on the back of earnings strength and lower valuations.
Sell-on-rally strategy kicks in
The clearest message from the latest portfolio commentary is that chose to monetise the benchmark rally rather than chase it. “When Nifty broke above 24,300, we just kept selling,” Goel said, adding that “Nifty is practically down to zero” in the portfolio now.
That marks a notable tactical shift, especially against the backdrop of a market that had been buoyed by improving sentiment and resilient quarterly earnings. Instead of broad-based index exposure, the strategy now appears far more selective and valuation-driven.
Why Bank Nifty remains the preferred bet
The AMC 's residual equity allocation, which stands at roughly 15% at the scheme level according to the broader discussion, is now largely parked in Bank Nifty. The rationale is straightforward: earnings have held up, and valuations remain undemanding relative to the wider market.
Goel said the fund remains 'very positive' on Bank Nifty because the earnings have been good and the price-to-earnings ratio for the index is somewhere between 13 and 14. In the fund house’s view, if markets rebound further, Bank Nifty should from these levels outperform Nifty.
Selective exposure, not a broad risk-on call
The positioning suggests Pace360 is not turning aggressively bullish on equities as an asset class, but is instead narrowing exposure to pockets where earnings visibility and valuation comfort still coexist. That is consistent with the broader asset allocation outlined in the conversation, where equity has been pruned significantly in favour of corporate bonds, with only a small allocation to precious metals.
Within equities too, the preference is increasingly index-led rather than stock-specific. The Bank Nifty exposure is via ETF, while the small-cap allocation is linked to a broad-based small-cap index rather than individual names.
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360 said they have sharply reshaped equity book, cutting Nifty exposure to near-zero and shifting remaining market allocation decisively toward Bank Nifty, in a signal that the fund house sees better risk-reward in lenders than in the broader benchmark at current levels. The move comes after the firm used the recent rally to cut equity holdings, while retaining conviction in banking stocks on the back of earnings strength and lower valuations.
Sell-on-rally strategy kicks in
The clearest message from the latest portfolio commentary is that chose to monetise the benchmark rally rather than chase it. “When Nifty broke above 24,300, we just kept selling,” Goel said, adding that “Nifty is practically down to zero” in the portfolio now.
That marks a notable tactical shift, especially against the backdrop of a market that had been buoyed by improving sentiment and resilient quarterly earnings. Instead of broad-based index exposure, the strategy now appears far more selective and valuation-driven.
Why Bank Nifty remains the preferred bet
The AMC 's residual equity allocation, which stands at roughly 15% at the scheme level according to the broader discussion, is now largely parked in Bank Nifty. The rationale is straightforward: earnings have held up, and valuations remain undemanding relative to the wider market.
Goel said the fund remains 'very positive' on Bank Nifty because the earnings have been good and the price-to-earnings ratio for the index is somewhere between 13 and 14. In the fund house’s view, if markets rebound further, Bank Nifty should from these levels outperform Nifty.
Selective exposure, not a broad risk-on call
The positioning suggests Pace360 is not turning aggressively bullish on equities as an asset class, but is instead narrowing exposure to pockets where earnings visibility and valuation comfort still coexist. That is consistent with the broader asset allocation outlined in the conversation, where equity has been pruned significantly in favour of corporate bonds, with only a small allocation to precious metals.
Within equities too, the preference is increasingly index-led rather than stock-specific. The Bank Nifty exposure is via ETF, while the small-cap allocation is linked to a broad-based small-cap index rather than individual names.