With macros looking better than ever before, corporate earnings growth looking strong, domestic flows remaining robust and FIIs rediscovering appetite for Indian markets, outlook for markets in 2024 looks promising. Harshad favours consumer discretionary, industrials and financials.
Union MF’s new Innovation & Opportunities Fund has cast its initial portfolio – and it looks dramatically different from all others. True to its positioning of investing in “newness”, the fund has invested significantly into an array of e-commerce businesses which it expects will become leaders in their respective verticals and capture huge growth opportunities in the years ahead.
The fund hasn’t invested in any of India’s top 10 stocks –sticking true to its philosophy of investing into businesses where “newness” is their USP. The fund’s staggeringly high active share of over 90% makes it a truly unique fund – a worthwhile consideration as a satellite holding in equity portfolios.
Union MF has tweaked its BAF’s asset allocation model from a pure valuation driven one to a blended one which considers valuations as well as trend/momentum. Consequently, net equity allocation has risen recently to70% and Harshad expects fund performance to improve significantly on the back of this change.