Time to be cautious for near time; moving from small & midcaps to largecaps for steadier growth: Mahesh Nandurkar
«We are moving some part of the money from smallcap, midcaps into the largecaps, turning a bit more defensive from a near-term perspective. I personally believe that the economic growth driven by investment cycle is very much on a strong footing,» says Mahesh Nandurkar, Jefferies.
What is your view on the market and what exactly are you communicating to your clients after the Union Budget and ahead of US elections?
Mahesh Nandurkar: So, what we have been communicating to investors and what has been our strategy is that over the last couple of months we have toned down the risk or the beta factor in our portfolios.
We are moving some part of the money from smallcap, midcaps into the largecaps, turning a bit more defensive from a near-term perspective. I personally believe that the economic growth driven by investment cycle is very much on a strong footing. But from a near-term risk reward perspective, I will side on the lines of being cautious here, because we are clearly seeing that the domestic retail activity is at a very-very high level.
In fact, in this calendar year, the first seven months or first eight months for which we have the data, we are seeing the total domestic inflows into the equity market from all sources, be it SIPs, be it mutual fund, be it direct stocks.
It is running at about $7.5 billion a month, which annualises to almost $90 billion a year and almost like 25% of gross financial savings, 35% of net financial savings. It is kind of going into the territory where we see these kind of numbers
