New Delhi, April 18 -- Anil Rego, founder and fund manager at Right Horizons PMS, says investors should consider allocating funds to defensive sectors such as healthcare and consumer staples, which are less affected by economic cycles and trade conflicts. He also noted that increasing exposure to gold could be a prudent move. In an interview with Mint, Rego shared his views on the sectors to watch and avoid and his investment strategy at the current juncture. Below are edited excerpts from the interview.

Investors should diversify their portfolios. They should spread investments across sectors, especially domestic-focused sectors, which may be more resilient during trade tensions, while cyclical sectors might experience more volatility....