In an exclusive interview with Harsha Jethmalani of Myiris.com, Mohit Mirchandani, Head Equity, Taurus Asset Management gave his views on equity markets and investment strategies.
>Do you expect the euphoric mood of the stock markets to last much longer?
Depends on the time horizon, short term, I expect a decline that will dent the euphoric mood temporarily. Medium and long term, we will be back on track to scale higher levels.
>Given the current trends in equities, which are the sectors you are watching closely?
We like the agro space, infrastructure theme, healthcare and consumption themes, oil and gas.
>Coming more specifically to your funds - what is your investment strategy? What are the key criteria you have in mind while selecting a stock?
The underlying philosophy is to look for favorable risk reward ideas. Constructing our portfolios involves multiple steps…
Step 1: We identify themes and sectors that we believe will play out over the next 12 – 24 months.
Step 2: We then select stocks on a bottom up basis within these high conviction themes.
We may also identify stocks that do not fit any larger theme, but are very good companies with good prospects, managed by capable professionals and have clean financials.
Step 1: We identify themes and sectors that we believe will play out over the next 12 – 24 months.
Step 2: We then select stocks on a bottom up basis within these high conviction themes.
We may also identify stocks that do not fit any larger theme, but are very good companies with good prospects, managed by capable professionals and have clean financials.
>As far as Taurus Ethical Fund is concerned you are overweight on the consumer non durables sector. Can you elaborate?
We are optimistic on the consumption theme in India. The companies within this space are high quality companies with huge cashflows, high ROE`s. We are optimistic on the consumption story.
>What innovative products can we expect from the company in near future?
We are constantly working on product ideas. When the time is right, we`ll launch the appropriate products.
>Do you think an equity fund should be fully invested or it should take active cash calls?
I think a fund manager should not hesitate from taking cash calls. Protecting an investor`s wealth is equally important.
>In these tricky times, how should an investor plan his investment?
A financial advisor is best positioned to deliver that advise based on the individual investor profile and needs.
>Where do you see the mutual fund industry a couple of years from now?
There will be consolidation. The temporary effect of SEBI`s announcements will be overcome – its a painful transition.
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