Ankit manages Mirae Asset’s midcap, multicap and large&midcap funds. All 3 funds have seen a relatively disappointing performance in FY24, but for those who believe more in front-view mirror investing rather than rear-view, they could be promising funds to invest in now, if you agree with his mean reversion bets.
He is overweight financials (largely private sector banks)and consumer discretionary – both of which underperformed in FY24, but which he strongly believes have set themselves up nicely for a mean-reverting rally in FY25 on the back of healthy earnings and very reasonable valuations – relative to market as well as their own historical averages.
He is underweight industrials – the darling of FY24 – as he is wary of valuations which he says are already discounting 2 year forward earnings. He plans to remain underweight as he believes the sector will underperform in FY25 on account of rich valuations.
Between cap size segments, he prefers large caps although mid and small caps’ earnings growth projections are stronger, as he believes large caps are relatively undervalued and also have healthy growth prospects. He has over 40% in his multicap allocated to large caps and around 60% in his large& midcap fund allocated to large caps.