‘Markets will be volatile in near term’

‘Markets will be volatile in near term’

Woody: Name the most optimistic sectors right now?

Neena: On what basis do you choose sectors and stocks?

Mahesh: We select sectors based on a top down approach looking at the economic cycles. Stock selection is based on fundamental bottom up approach looking at valuations.

Shiva: How do private equity investments fare?

Mahesh: Shiva, Private equity is meant for a slightly longer term. The returns over the period should be about 20% per annum.

Sheetal: Where do you see the market going and what approach of investments should one adopt in this market and in the coming future ?

Also See Graphic

Mahesh Patil, co-head (equity investments), Birla Sun Life Frontline

Vandy: Are funds with infrastructure theme a safe bet if I have a 10-year horizon?

Mahesh: Infrastructure theme is good in the long term.

Sheetal: Some of Birla’s thematic funds don’t seem to be doing well despite the market reaching 17,000 levels last year. What do you have to say?

Mahesh: Thematic funds have to be looked at in the context of the fund’s objective and the theme which is in favour at that point in time. It is possible that for a particular period that theme may be out of favour, which explains the fund’s relative underperformance vis-a-vis the market.