HDFC and Reliance Mutual Fund have emerged as the top fund houses in terms of returns for three consecutive quarters in the ET Quarterly analysis. ET Intelligence Group met Sunil Singhania , head equities, Reliance Mutual Fund, and Srinivasan Rao , senior fund manager, HDFC Mutual Fund , to discuss about their wining investment strategies.
INVESTMENT STRATEGIES
Srinivasan Rao: We essentially continue to follow bottom-up stock picking model. The management quality of companies that we select for investment is an important factor for us. We strive to build a portfolio of such companies with sustainable earnings growth. This should help us beat the instances of an economic downturn.
Sunil Singhania: We continuously evolve our strategies considering that India is an emerging country. We feel a premium has to be given to quality rather than quantity of companies in the portfolio. The Satyam scam has also taught us to avoid companies wherein the management is slightly of dubious reputation. We are keen to invest in niche business models.
SECTORS BULLISH ON:
Srinivasan Rao: We are bullish on India-centric consumption theme. The sectors such as financial, infrastructure (more of capital goods companies) and pharma (selectively) look attractive.
Sunil Singhania: Consumption is the buzz word today. The way the young India thinks, spends and invests is different from the previous generations. We are bullish on banking, infrastructure and cement sectors
SECTORS STAYING AWAY FROM:
Srinivasan Rao: We are underweight on the power sector. Also commodity-driven sectors such as metals, real estate and cement continue to remain low key.
Sunil Singhania: We are avoiding telecom, metals and reality sectors. We are not comfortable with the current valuations in these sectors.
INVESTMENT STRATEGIES
Srinivasan Rao: We essentially continue to follow bottom-up stock picking model. The management quality of companies that we select for investment is an important factor for us. We strive to build a portfolio of such companies with sustainable earnings growth. This should help us beat the instances of an economic downturn.
Sunil Singhania: We continuously evolve our strategies considering that India is an emerging country. We feel a premium has to be given to quality rather than quantity of companies in the portfolio. The Satyam scam has also taught us to avoid companies wherein the management is slightly of dubious reputation. We are keen to invest in niche business models.
SECTORS BULLISH ON:
Srinivasan Rao: We are bullish on India-centric consumption theme. The sectors such as financial, infrastructure (more of capital goods companies) and pharma (selectively) look attractive.
Sunil Singhania: Consumption is the buzz word today. The way the young India thinks, spends and invests is different from the previous generations. We are bullish on banking, infrastructure and cement sectors
SECTORS STAYING AWAY FROM:
Srinivasan Rao: We are underweight on the power sector. Also commodity-driven sectors such as metals, real estate and cement continue to remain low key.
Sunil Singhania: We are avoiding telecom, metals and reality sectors. We are not comfortable with the current valuations in these sectors.
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