Wealth Forum Tv

Forget cap-size based investing, embrace theme based investingSwarup Anand Mohanty, Mirae Asset India MF, Mumbai

Share this Video :
More From :fund talk
Video Summary
Read in
  • English

Swarup’s elevation to Vice Chairman & CEO of Mirae Asset Financial Group will see him spearheading the Group’s growth thrust in India across diverse financial services businesses, in what the Group sees as becoming a regional office and not just another country it operates in.

With 40% of equity flows in CY23 going into small cap funds, not having a small cap fund in its product suite resulted in muted business performance – but Swarup maintains that launching a fund just to capture flows is not what his firm is comfortable with, especially when valuations in the space leave little room for new investors to have a good experience.

He expects this year to see more distributor and investor focus on flexicap, multicap and large&midcap segments, which he believes will help his firm regain business momentum.

He believes the Indian market will progressively shed its focus on cap-sized based investing (large/mid/small cap) and embrace the global model of theme based investing (consumption/manufacturing/services). Themes are where the real alpha is generated, more than size of companies.

Swarup has always welcomed distributor feedback, suggestions, constructive criticism and requests all MFDs to let him and his team know what more or different they expect from him and his team, as they endeavour to continue working closely with all distributors to make the most of this wonderful growth opportunity that India’s macro environment is setting up for investors and all industry participants.


Share your comments
(Type INV if you are an investor)
kCLHnH
Comments Posted
Mohsin Bijepuri ARN NO :33913 Chennai , 02 Feb 2024

Moving from size based equity assets to theme based investing which will be a good evolution for our industry.

vaidyanathan ravichandran ARN NO :262078 Mumbai, 01 Feb 2024

New investors as well as conservative investors choose the Mutual Fund route mainly due to the diversified risk that this model offers while ensuring inflation beating returns. Cap-size based choice of funds ensures this to a large extent. However, theme-based choice of funds is fraught with the risk of concentration of risks in a few themes / industries. While there is potential of a higher alpha, there is also a risk of sharp decline owing to a host of factors like Government policy changes, international market related factors like capacity, tariff, scales, pricing, etc. Theme-based investing is well served by Small Cases and would be more suitable for seasoned investors with a higher risk appetite. Why do Mutual Funds have to get into this space, too?

Copyright 2017   All Rights Reserved.Wealth Forum Ezine