Neha: What are the sectors your fund likes and why?
Aniket Inamdar, chief investment officer, Deutsche Asset Management (India) Pvt
Inamdar: We are positive on the infrastructure sector and on private sector banks. We like companies owning natural resources. We feel that a stock-specific approach is likely to benefit in the current environment.
Roddick: Your fund size is small, only about Rs200 crore. Does a small size like this offer you any advantage?
Inamdar: We believe in investing in quality stocks with a buy and hold kind of view.
The fund invests predominantly in quality large-cap stocks and, therefore, in very liquid stocks. The size does not matter at all.
Liza: What are your thoughts on the Reserve Bank of India’s (RBI) rate changes? How will it affect the mutual fund industry?
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Inamdar: I think the measures taken by RBI are beneficial for the markets and the MF industry. The gradual removal of excess liquidity is essential which is what RBI is doing.
In doing so, they are taking care that there is no turbulence in the markets. The measures were along expected lines.
Liza: What do you think of the infrastructure sector now that it’s looking up?
Inamdar: We believe that the outlook on the infrastructure sector is very bright. The country is going to see large investments taking shape in the power and roads sectors over the next four to five years, which will, in turn, spur economic activity.
Roddick: What do you think of the real estate sector? Have the prices moved up too fast?
Inamdar: The real estate sector is very important for the economy as there is a large housing deficit in the country. The sector has, therefore, great long-term potential. Real estate is also a highly localized business. One could hypothetically be bullish on one city and bearish on the other. We are a bit cautious on real estate developers as we think prices in key cities have risen high enough to have an impact on volumes.