New Delhi, April 24 -- With equity markets roiled by the West Asia war and sharp swings in mid- and small-caps, investors are grappling with how to position portfolios.

In an interaction with Mint, Trideep Bhattacharya, president and chief investment officer-equities, Edelweiss Mutual Fund, with average assets under management of Rs.1.65 trillion in the March quarter, shares why he remains cautiously optimistic and how investors should navigate the current phase. Edited excerpts:Where do you see markets heading from here, given the recent volatility?

We are incrementally positive on markets, particularly from a near-term perspective. We entered this geopolitical phase-the US-Israel-Iran conflict-with fundamentals on a strong footing, ma...