InCred AMC is holding 26% in cash. CEO Mrinal Singh explains why
Mrinal Singh, CEO & CIO, InCred AMC, says “one can look at our cash as a proxy largecap allocation. We have kept that largely in anticipation of volatility in the market and we would look to deploy it as the market offers volatility at interesting prices.”
Did you come across that note, kind of a very honest admission from Chris Wood in the Greed & Fear newsletter, saying that, yes, India is the best game in town right now with superior macros? All of that is fine, but a kind of admission that it is turning out to be quite expensive. As a practitioner, are you finding it challenging too?
Mrinal Singh: Yes, that is a practical challenge, yes. We had the market run up significantly in the last 12-18 months where it makes it more challenging. Obviously, when the valuations are elevated, the potential returns get subdued, so you need to also manage the return expectations and you need to go down the ladder in terms of market cap, you need to actually dig deeper and we expect customers to have a higher horizon when they make an entry at this juncture. It does become challenging when the markets have a very sharp run up in a short span of time.
Since you are saying that there is a possibility to jump in in the market even now, you just have to stretch your time frame. Where is it that you still see value and growth both on the table?
Mrinal Singh: Well, both value and growth, is too much to ask. The value school of thought will find it difficult to pick a lot of names because clearly the valuations have run up. From a
