During all markets conditions, the key parameters that drive our investment decisions are fundamentals and valuations. The fund invests in wealth-creating companies whose advantage will translate into better return on capital. We follow a bottom-up approach to stock picking.
What are your views on the top three sectors in the portfolio?
Software: Top-rung IT services companies are poised to take advantage of the demand environment on the back of increasing offshoring. We expect margins to come down over the medium to long term.
Large companies are well placed in terms of scalability of operations and attracting fresh talent at a reasonable cost. Any slowdown in the developed economies could result in cost cutting and offshore outsourcing.
Media: We are positive about NDTV & CNBC TV18 as we expect leading players to gain a better share of the ad spend and see a rise in subscription revenue.
FMCG: Our investments have been in Nestle, Asian Paints, Tata Tea. These companies are poised to take advantage of the economic growth and export potential.
What is your outlook for equities for the short to medium term? What kind of returns can one expect from equities?
Global investors are positive on emerging markets and India, given the expected growth of these economies. This combined with an increase in domestic inflows should help the equity markets. However, higher oil prices can impact growth.
