Fund Manager Talk | Defence and rail PSU stocks fall up to 40%. Viraj Gandhi on what should investors do?
Even after consistent selling in defence and rail PSU stocks, the long-term prospects of the two sectors remains positive, says Viraj Gandhi, CEO of Samco Mutual Fund.
«Given the current values, one should carefully assess these sectors. If one can withstand further short-term downside, this could be an excellent chance to add to these names,» says Viraj Gandhi, CEO of Samco Mutual Fund.
Edited excerpts from an interview:
Help us understand the rationale behind the launch of a multi-cap fund at this stage. And how does it differ from a flexicap fund?
The multi cap category's market share has increased from 2.5% in November 2021 to nearly 6% by August 2024. Over the last 36 months, this category has grown at the quickest rate.
We think that this category is a special opportunity since it offers development of small caps, stability of large caps, and quality of midcaps. Compared to flexi cap funds, the Multicap category has the distinct advantage of maintaining a fund manager's discipline to invest a minimum of 25% of the portfolio in midcap and smallcap companies, each of which contributes to stronger alpha generation over the long term and during bull markets. It will be evident from the following table what we mean.
With Samco’s multi cap fund we have decided to add smallcaps beyond Nifty 500 TRI which provide investors with an additional alpha generating opportunity.
Given that you intend to have up to 25% exposure in smallcap stocks outside the Nifty500 depending on the opportunity in hand, tell us how
