Investors need to look for companies that are ready to face the future, according to two top executives of Kotak Asset Management Co.
“Innovators, disruptors will do well. They are the future,” Nilesh Shah, managing director of Kotak Mahindra AMC, said in The Mutual Fund Show. “Essentially, you should future proof your portfolio by investing in companies who are ready to face the future.”
According to Harsha Upadhyaya, chief investment officer-equity and president at the AMC, manufacturing sector to be a major growth driver over the next five to seven years due to the due to the policy push by the government. And he also expects earnings momentum to sustain in the near term.
The asset manager’s Kotak Bluechip Fund completes 25 years. The scheme has offered a SIP return of 16.36% CAGR in 25 years.
“We are rock-solid in terms of our principles,” said Shah. “We are are growth-at-reasonable-price investors.”
Upadhyaya said the fund stuck to its “investment discipline”. “We have always invested in established companies, as we assess companies on competitive advantage.”
A reason why both of them are not worried about the market regulator’s caution on the froth in small- and mid-cap schemes.
“Nothing has changed in the fund constitution. We are investing more than 80% in the large cap stocks. The rest of 20% is available to invest in mid and small cap,” Upadhyaya said. “Within the large-cap space, it is equally split between the Nifty 50 and Nifty Junior.”
“We have a tilt towards domestic businesses now,” he said. “As the size grows, as the market matures, it becomes challenging to create the same alpha we made a decade ago.”
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