Mongavari Tafavat Patrak EXCEL FILE
As we enter the new financial year, with the indices at an all-time high, many mutual fundinvestors are wondering what funds to add to their portfolio. With valuations ruling at record-high and earnings taking time to catch up, wealth managers believe that the year going forward will be a stock pickers' market."In the coming financial year, there is likely to be a dispersion in corporate earnings. At this point of time, when the dispersion in growth and valuation is heightened, a market-cap bias is not relevant," says Roopali Prabhu, head of investment products at Sanctum Wealth.She recommends investors to go for fund managers who can actively pick stocks and generate higher alpha.Here are some equity funds which Sanctum believes investors could add in the coming year. The fund managers' focus on picking up stocks at attractive valuations and focus on companies which not only give high returns on capital employed but also generate consistent and incremental cash fl ows has paid off. This has resulted in superior performance over the last three years. While it has a mandate to invest across market capitalisation, its portfolio currently leans towards large-caps. Typically large-caps make up 75% of the portfolio, but with the rise in the markets, large-cap weight is higher by 5-10% than its peers.
Download Excel File: CLICK HERE
As we enter the new financial year, with the indices at an all-time high, many mutual fundinvestors are wondering what funds to add to their portfolio. With valuations ruling at record-high and earnings taking time to catch up, wealth managers believe that the year going forward will be a stock pickers' market."In the coming financial year, there is likely to be a dispersion in corporate earnings. At this point of time, when the dispersion in growth and valuation is heightened, a market-cap bias is not relevant," says Roopali Prabhu, head of investment products at Sanctum Wealth.She recommends investors to go for fund managers who can actively pick stocks and generate higher alpha.Here are some equity funds which Sanctum believes investors could add in the coming year. The fund managers' focus on picking up stocks at attractive valuations and focus on companies which not only give high returns on capital employed but also generate consistent and incremental cash fl ows has paid off. This has resulted in superior performance over the last three years. While it has a mandate to invest across market capitalisation, its portfolio currently leans towards large-caps. Typically large-caps make up 75% of the portfolio, but with the rise in the markets, large-cap weight is higher by 5-10% than its peers.
Download Excel File: CLICK HERE
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