A global technology fund could be an ideal vehicle for investors, says Trideep Bhattacharya of Edelweiss AMC
MintGenie, Bhattacharya said that India has benefited from a combination of local and global trends, including the Indian government’s favourable stance towards infrastructure development, geo-political diversification through initiatives like China+1, and the demographic dividend poised to favour India over the next 25 years. Although it was an interim budget in an election year, it adeptly strikes a balance, prioritizing sensibility over populism.
It showcases India’s unwavering commitment to infrastructure development, coupled with a steadfast adherence to fiscal prudence. We anticipate that the financial year 2024-25 will be a year marked by transitions, primarily driven by three key expectations: We believe that India’s resilience amid global turbulence stems from its reliance on domestic earnings drivers, rather than being heavily dependent on exports.
Despite the challenging global macroeconomic conditions, India’s robust domestic demand has helped sustain earnings growth. Additionally, India has benefited from a combination of local and global trends, including the Indian government’s favourable stance towards infrastructure development, geo-political diversification through initiatives like China + 1, and the demographic dividend poised to favour India over the next 25 years.
We expect the upcoming elections in 2024 to introduce volatility into financial markets. Furthermore, we observe that large-cap valuations are favourable, whereas mid- and small-cap companies exhibit strong earnings momentum.
Therefore, we recommend investors allocate their equity investments towards balanced portfolios across market capitalizations, such as multi-cap or flexi-cap funds. Anticipating a period of "noisy macro conditions"
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