Raunak Onkar reveals 3 value plays in current market scenario
«I do not think we can expect a very high rate of return. But yes, we will wait and see how much returns we can earn in the future,» says Raunak Onkar, PPFAS MF.
Your AUM has gone, which started with almost 150 crores, it is now at 75,000 crores.
Raunak Onkar: Yes.
So, 13 years, what has been the CAGR return?
Raunak Onkar: It is about 19%.
A lot of smallcaps are given returns which are higher than that.
Raunak Onkar: I agree.
So, tell us where you think the markets are headed. Do you think 20% return, which you have given in last, since inception, can that return come from these levels also for next five years?
Raunak Onkar: Very hard to sustain. If you see today, the valuations are at a different level. So, when we started in 2013, it was a range bound kind of a market, a couple of flat years just after the run up from the global financial crisis and at that time, it was good to find ideas which were reasonably valued and had some growth trajectory to them.
But I think the market is totally different today. We are seeing many sectors being bid up in expectations of future growth, which is coming in. I do not know if it will come or not, but mostly people are bidding up stocks based on order books, some are bidding in terms of the sector doing well, some are doing the promise of this particular industry doing well and valuations are no longer at the same place.
So, I do not think we can expect a very high rate of return. But yes, we will wait and see how much returns we can earn in the future.
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