Fund Manager Talk | Tata Mutual Fund deploying cash to buy stocks after market correction
The recent market correction, especially in the mid cap/small cap segment, has certainly made select businesses worth adding to portfolios, says Chandraprakash Padiyar, Senior Fund Manager, Tata Asset Management.
«We have deployed quite aggressively in our funds during the current correction – however the deployment has been in select businesses and not across the board,» he says.
Edited excerpts from a chat:
Do you think that the impact of the Rs 1 lakh crore boost to consumption from income tax relief in the Budget would be felt more on discretionary than staples?
Firstly, some of the tax benefits one should assume will be used for increase in savings or deleveraging. Over the past 5 years household leverage has moved higher and it would be prudent to assume that a part of the benefit would be used for reduction of debt. In other words, the household savings rate will certainly benefit from this move of the government. On Consumption, we are optimistic on consumer discretionary to pick up pace. For Staples, penetration levels are already high and may not move the needle much in terms of incremental growth. Residential housing could be another asset class where demand may improve.
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