ETMarkets Smart Talk: Aashish P Somaiyaa explains why India will stand out compared to peers, especially the US
“India is standing out not only now, but it is likely to stand out in the forthcoming few years as well because the prime reason which is not discussed enough is that we are counter-cyclical to the western world, especially to the US,” says Aashish P Somaiyaa, Chief Executive Officer, White Oak Capital Management.
In an interview with ETMarkets on the sidelines of Investing Accelerator Summit 2023, Somaiyaa said: “Apart from all the other structural positives that have been spoken about India, this is one thing which is not spoken enough” Edited excerpts:
How should one pick the fund – is 1–year performance a good benchmark to select a fund?
In fact, one-year performance is exactly not the benchmark. In fact, it is a contra-indicator, that is what my analysis kind of tells me.
The thought about speaking on why winners rotate comes from the fact that when we track investor behaviour or even if you track fund flows in the industry, what you will find is typically a lot of money ends up going to people who have done very very well in the last 1 year or maybe in the last 3 years period.
At this juncture, if you take the best performing fund of the last three years you put money in there, and then wait till August 2026 to see how it plays out — you will find is that the correlation between ranks for the last three years and the rank for performance in the subsequent three years, the correlation of these two ranks is practically nothing.
Saurabh Mukherjea on the positive as well as negative triggers lying ahead of Indian market
There is not only no correlation but sometimes it actually becomes a contra-indicator. So, there are many regulatory disclaimers that all the mutual fund guys put up that past
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