Tips for leaving your wallet bare of its FAANGs
Trideep, I guess this one comes to you because, again, when I watch the polls, and I hear a lot of experts who come on some of the shows that I do, everyone thinks that from a perspective in the short term, BFSI the bank is probably that space, which will do just fine. From a five-year perspective, Indian technology is likely to get its money’s worth. My question was more about whether thematic funds are the ideal bet or not, but I would probably urge you to tell me that as part of thematic funds in a one-year perspective, our BFSI funds are great to have. , and in a five-year perspective, are technology funds attractive?
TRIDEEP BHATTACHARYA: The answer to that question is a classic English answer, that is, it depends. But let me elaborate on what I’m trying to say about this. Regarding sector funds, I think the first thing that needs to be calibrated is risk appetite. If you go there, say six months ago, even nine months ago, consumer discretionary funds were the ones that were in favor. Now, obviously, with the reports of the two companies and improving credit growth, the banking industry is obviously in vogue, if I can use that term. Therefore, people seek to expose themselves to it. Of course, the technology, especially given the coming new age IPOs, is where it comes from. So if you put that in perspective, ideally what I’m trying to highlight are different times, different areas that are becoming fashionable. Next, investors looking to invest money in sector funds certainly need to have the patience, the means and the time to change at the right moment, in case they somehow want to move on to the next hot sector on a market. period of time, so is it certainly necessary to invest in the banking sector in the short term?
I can’t make a recommendation on your TV, but it will look from the factual data from companies that have so far reported that credit growth is picking up and that we are in the early stages of the business cycle. So if that were to come to fruition, the banking industry is definitely one you should be making hay in the sun, but hey, there are other ways to do the same. Like, for example, capital goods companies, or like the start of the consumer discretionary cycle. So in other words, while sector funds are one way to slice the overall pie, there are plenty of other ways to play that out. But one thing I would say, certainly given where we are in the business cycle, is that a fund with an economic bent in that direction, in other words, that is geared towards economically sensitive sectors is definitely whatever to do, whether it is the banking sector or others, that I leave the choice vis-Ã -vis the investor.
Tech funds are a hot topic of debate, I think, with older new investors, with the new stage of IPOs taking place, it has challenged our core investment framework. Some of them like Paytm etc. which come into the market without commenting one way or another certainly ask us whether these companies should endure or be there for the long term or are these just fashions? I would say some of them will definitely be there. The contention market is certainly moving from brick and mortar to more digital and the last couple of years have certainly gone in that direction. So it is clear that over a period of time, the right selection of technology investments is a sure way to invest in the medium term, but that said, again, this is an area that is fraught with disaster. For a successful Amazon, there have been several Yahoo and other names, which kind of bitten the dust. So which one and who runs it? How is it governed? Which investment frameworks everyone uses is definitely the key question to answer before putting any money to work. But in principle, why not within five years some of these technology companies will certainly be interesting opportunities.