'We expect market to deliver 15 per cent returns'

MANAGER SPEAK: Anup Maheshwari, head of equities, DSPML Mutual Fund

The fund has not taken substantially aggressive sectoral bets, though it does have the option to do so whenever it is required. Since we believe that the current rally will continue to be broad-based, we do not plan to take risky sectoral bets in the foreseeable future.

Technology, financial services and diversified are the top sectors in your portfolio. What is your outlook for these segments?

We are bullish on the tech sector and expect leading IT firms to post returns in excess of 13 per cent CAGR for the next couple of years.

We are also positive on financial services since Indian banks have good asset quality and the growth in retail loans is expected to continue on the back of higher disposal incomes, favourable demographics and low interest rates.

Diversified firms with a focus on cement and engineering are likely to do well on the back of the government's thrust on infrastructure and the growth in housing sector.

Which sectors, according to you, may outperform the market in 2005?

We continue to expect a broad-based rally but will pay special attention to infrastructure-related sectors such as cement, engineering, power, etc.

What is your take on the mid-cap segment? Are you planning to increase exposure to the segment?

We have a reasonable exposure to mid-cap stocks. Around 80 per cent of the fund's portfolio consists of large-cap stocks and small- and mid-caps form the rest. We select companies based on their business fundamentals rather than their market cap.

How do you expect the market to perform this year?

We expect the market to deliver returns in the range of 15 per cent, in line with its earnings growth.