Long-term story continues to be robust: Sukumar Rajah

MANAGER SPEAK/ Sukumar Rajah, chief investment officer, Franklin Templeton Mutual Fund

Your allocation to the healthcare sector is considerably low. What is your take on the sector going forward?

Our exposure to sectors is based on relative valuations and we are optimistic about the healthcae sector. The generics market is expected to grow, aided by patent expiries.

Indian companies with access to a large pool of skilled chemists and approved manufacturing facilities will have an advantage.

You have substantial exposure to technology and automobiles. What makes these two sectors attractive?

At current levels, leading technology companies are attractively valued given their long-term growth potential. Continuing economic expansion and rise in per capita GDP numbers are expected to aid the automobile sector.

What is the fund's strategy in the current market scenario?

The change in sentiment offers good buying opportunities for long-term investors like us given that there has been no change in fundamentals.

We will focus on quality stocks across sectors to build a portfolio that can deliver over market cycles.

What is your outlook for the stock markets?

Given the strong fundamentals, at current levels, the equity markets look undervalued and attractive for investments with a three-five year horizon.

We expect the markets to remain volatile over the short term. But the long-term story continues to be robust.