The first series of interviews for Smart Portfolios season III, we have Shirshir Bajpai, senior vice president, IIFL Private Wealth. Bajpai deatils out his view on the markets and expectations going ahead. Also, shares his rationale on stock selection and investment strategy with advise for investors.
Currently, the markets are at multi-month highs. What are your expectations and what would you advise investors?
The markets are surely at multi months high but the move is on expected lines. The only concern maybe that it has moved too fast over the last few weeks. I don’t expect a deep correction in the near future but there will surely be some amount of volatility going forward. Those who have missed the opportunity should not chase the markets. Be very clear with your objectives & stock selection here on. The investors who were invested in the markets before the rally started can remain invested but should definitely have a review of their portfolios.
Your Smart Portfolio is off to a flying start and you also you booked gains in this short period so far. What would your strategy be in future?
My portfolio was more or less fully invested from the very beginning, since our outlook was very bullish. The markets have given a sharp up move which in turn gave me some good gains prompting me to book some profits. I still have a positive view on the markets.
What are the stocks or sector you would focus on?
My investments will be diversified across sectors. The stock selection remains the key here on.
What are the key factors that you look into a stock before selecting it?
I would like to look at the growth potential in the stock and the relative valuations . There should be some clear visibility of earnings growth over a longer period. Whether there are any major events or earnings risk associated with the stock or the industry.
Your advice for investors?
First, have goals clearly defined. Have a plain and simple approach for investments. Don’t be bogged with information overdose and also avoid micro-analysis of macro data. Look for growth stocks with strong fundamentals and earnings visibility. Look at the risk-reward ratio and how favorable it is. It’s always better to avoid being an opportunist in the markets. Always be nimble in the markets.”
