Market volatility creates chances: Bajaj AMC MD
Your equity strategies are trying to establish a track record in testing times. What has been your investment approach through the market correction over the
Your equity strategies are trying to establish a track record in testing times. What has been your investment approach through the market correction over the past two years? Which sectors are emerging as the biggest winners and losers? Foreign portfolio investors turned buyers in July. Does this mark the beginning of a sustained trend? What are the biggest risks for Indian equities over the next 6-12 months? Before you continue reading How financially free are you? Most people overestimate their financial freedom. Discover your Financial Freedom score through a quick survey Calculate My Score Where are better investment op portunities today—large-, mid-or small-caps? More than half of diversified equity funds have generated SIP (Systematic Investment Plan) returns of less than 5% over the past two years. Do you expect SIP breaks to rise? If an investor has Rs.10 lakh to invest for the next three-five years, how should the portfolio be structured? Your outlook on gold and silver? On the debt side, which part of the yield curve looks most attractive? Our investment philosophy is built around generating alpha through three distinct sources of edge. The first is the informa tion edge, but as information has become more widely available, that advantage has diminished over time. The second is the quan titative edge, where we use data, research tools and proprietary models to analyse information. The third, and perhaps the most important today, is the behaviour al edge.
Markets often overreact or underreact because of fear and greed, creating opportunities for disciplined investors. We also use behavioural analysis to identify and minimise biases in our own decision-making. We believe that combining quantitative research with behavioural insights helps us navigate volatile markets.The first quarter earnings season has been broadly encouraging. Capital goods, diversified finan cials, metals and mining, telecom, and auto-related sectors have delivered healthy results. Despite higher input costs, auto companies have performed well, while higher commodity prices have supported metals and mining. Telecom earnings have also benefited from rising average revenue per user (ARPU). On the other hand, FMCG (Fast Moving Consumer Goods) and IT (Information Technology) services have remained relatively subdued, although we are begin ning to see early signs of improve ment in both.It’s too early to say that. FPI flows are highly tactical and tend to move towards markets offering the best opportunities globally. Whether the recent reversal sus tains will depend on geopolitical developments, impact on rupee and how long India can absorb ele vated dollar-denominated crude oil prices. That said, India’s long-term investment case remains intact. As global investors increasingly look beyond short-term themes, India’s structural growth story could attract more patient capital. One factor working in India’s favour is that the Reserve Bank of India (RBI) appears to be in a rela tively stronger position to manage pressure on the rupee.
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