Groww MF’s ELSS fund was inherited as part of the IndiaBulls MF transaction and Anupam spent a lot of time in aligning its portfolio with the AMC’s Q-GARP (Quality/Growth at a reasonable price) framework.
The heavy 90%+ tilt towards large caps was gradually balanced out to 60% large cap and 40% mid and small caps with an endeavour to keep the ratio in and around the 50-50 ratio.
While the current cyclical slowdown is impacting stocks across many sectors, his efforts continue to focus on picking stocks bottom up with healthy earnings visibility.
Infra – cement – capital goods is a cluster that he likes and is overweight on. He believes growth tailwinds will continue and by picking stocks that have strong operating leverage and healthy growth pipeline, margin expansion in coming quarters will more than compensate for valuations that may at present look a bit expensive.
After being underweight FMCG, he is now beginning to take a look at stocks where he believes all the bad news is potentially in the price and where volume growth trends are beginning to look encouraging.
He is using the current correction period to align the portfolio towards stocks and sectors he sees outperforming the next leg up of the markets, whenever it starts.