Dalal Street Voice: Though equities remain best bet, small exposure in gold, debt prudent to balance portfolio in 2022: Manish Jain of Ambit AMC
In an interview with Zeebiz's Kshitij Anand, Jain said that we could expect a strong growth-oriented Budget with spends on infra, rural and agri, and we would expect some increase in cigarette taxes but nothing much on the direct tax side. Edited excerpts
Manish Jain, Fund Manager, Ambit Asset Management said that we personally think equities remains one of the best asset classes to beat inflation in a conclusive manner, but a small exposure in gold and debt may be prudent to balance things out.
Jain has over 16 years of experience in equity research. Before moving to Ambit Asset Management, he worked with Nomura for a decade as a Lead Analyst covering FMCG, electrical durable and retail.
In an interview with Zeebiz's Kshitij Anand, Jain said that we could expect a strong growth-oriented Budget with spends on infra, rural and agri, and we would expect some increase in cigarette taxes but nothing much on the direct tax side. Edited excerpts:
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Q) A strong close for the year 2021 for equity markets – what are your expectations for the year 2022?
A) We would expect the markets to remain strong in 2022 as well. We believe that this structural Bull Run is here to stay.
Growth oriented approach by the government, strong earnings momentum, China slowdown, low interest rates and lower inflation are going to be some of the key factors.
FII inflow is expected to remain strong and should contribute to the market momentum. Overall, we remain optimistic.
Q) What are your expectations from the Finance Minister on Budget 2021?
A) We would expect a strong growth-oriented Budget with spends on infra, rural and agri. Aggressive targets on disinvestment and fiscal consolidation to take a back seat.
We would expect some increase in cigarette taxes but nothing much on the direct tax side.
Q) Some of the sectors that did well in 2021 were power and metals which house some big PSU names as well. Do you think these sectors could continue to remain in focus in 2022 as well?
A) While low PE and high beta sectors were in flavour in 2021, going forward we would expect some sector rotation to happen.
Banks, especially private sector banks, autos and consumer discretionary should be the key sectors to watch out for.
Q) How do you view new-age companies that hit D-Street in 2021. But, when growth looks more lucrative than value – how do you take your pick? Being a value investor – what percentage should one keep in the portfolio?
A) Well, our philosophies are fairly water tight. So, the only fund we can look at New-age companies for is TenX.
We actively keep looking for ideas that meet our filters. The best way is to look at management depth, long-term growth prospects and competitive advantage. Conventional valuation methodologies are likely to fail here.
Q) What are your expectations from 2022 on the quantum of money that could be raised from primary markets considering over Rs 1 lakh cr was raised in 2021? Which company/ies are you are looking forward to?
A) Given the market momentum, we would expect the IPO pipeline to remain strong in 2022. A lot of big-ticket IPO's should be lining up specially the government ones too including LIC.
Q) In terms of asset allocation – how do investors plan their investment journey in 2022?
A) We personally think equities remains one of the best asset classes to beat inflation in a conclusive manner. A small exposure in gold and debt may be prudent to balance things out.
Q) Equities delivered many multibaggers in 2021 – do you think 2022 will also be as thrilling for investors look to double wealth outsmarting other traditional asset classes?
A) No we think the era of making easy money is out of the way and investors will look to be very careful in terms of quality. We believe that the best way to make money is to invest in the Good & Clean companies.
Q) Where is the smart money moving especially at a time when we have seen 2 back-to-back years of gains in equities?
A) Always towards quality companies, and quality businesses.
Q) What do you do when you are not managing money?
A) Traveling, seeing the world and soaking in the cultural diversity.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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