Market Veterans Offer Insights on Profitable Investment Strategies at IT-BT Budget Round Table
In a recent discussion at the India Today-Business Today Budget 2025 Round Table in New Delhi, seasoned market veterans shared valuable insights on navigating the current market landscape for optimal returns. As the market dynamics shifted from October 2024 onwards, experts emphasized the importance of long-term investments and focusing on domestic themes to maximize profitability.
Vijay Kedia, a prominent figure in the market, highlighted the significance of identifying themes aligned with the government’s current priorities. He emphasized steering clear of sectors facing intense competition with China and instead focusing on emerging domestic themes like tourism. Drawing a parallel to past success stories in sectors such as railways and defense, Kedia expressed optimism about the growth prospects of the tourism sector in India.
Reflecting on the evolution of India’s aviation industry over the past decade, Kedia underscored the sector’s substantial growth trajectory. With the number of operational airports doubling from 74 in 2014 to over 155 in 2024, and ambitious plans to reach 350-400 airports by 2047, the aviation sector presents compelling investment opportunities. Furthermore, the surge in domestic air passenger traffic and fleet expansions by Indian airlines further accentuate the sector’s potential for sustained growth.
While comparing India’s economic standing with that of China, Kedia shed light on the significant disparities in spending across key sectors. Despite India’s economy reaching approximately $4.27 trillion, dwarfed by China’s $18 trillion economy, the stark contrast in educational spending—$12 billion in India versus $800 billion in China—underscores areas for potential growth and development in the Indian market.
In navigating the complexities of the current market environment, Dhirendra Kumar, CEO of Value Research, shared prudent investment advice aimed at minimizing risks and optimizing returns. Stressing the importance of gradual investment allocation, Kumar advised investors to exercise caution and avoid investing all capital at once. By adopting a disciplined approach of regular investments in mutual funds, investors can mitigate the impact of market fluctuations and safeguard their portfolios against undue risks.
Drawing on his extensive experience in tracking mutual funds, Kumar emphasized the significance of simplicity and consistency in investment strategies. Contrary to the allure of exotic market segments, Kumar advocated for a pragmatic approach focused on diversification and long-term growth. With select small-cap funds delivering impressive annualized returns of 20% over the past two decades, Kumar’s advice resonates with investors seeking stable and sustainable investment avenues.
Emphasizing the importance of diversification in capital allocation, Kumar recommended exploring multicap funds as a viable investment option in the current market scenario. By spreading investments across diverse asset classes, investors can mitigate risks and capitalize on emerging opportunities within the market landscape. For investors yet to allocate funds, Kumar advised a phased approach of investing 100% of the capital in multicap funds over the next three months to leverage market dynamics effectively.
Maneesh Dangi, CEO & Founder of Mosaic Asset Management, highlighted promising investment prospects in India, including opportunities in unlisted sectors. Advocating for a cautious approach towards sectors like auto, ancillaries, and metal, Dangi expressed optimism towards the services sector and the resurgence of microfinance. With a bullish outlook on IT and IT services, Dangi’s insights offer valuable guidance for investors seeking to capitalize on growth sectors within the Indian market.
Addressing concerns surrounding the depreciation of the rupee, Dangi provided a nuanced perspective on the currency’s valuation. While acknowledging the rupee’s current position at an all-time low, Dangi noted that additional sanctions or tariffs on China could further impact the currency’s value. In such scenarios, a depreciating rupee could potentially benefit sectors like IT and precious metals, presenting strategic opportunities for investors attuned to market fluctuations.
As investors navigate the intricacies of the evolving market landscape, the collective wisdom of market veterans offers valuable insights and strategic guidance for maximizing returns and minimizing risks. By aligning investment strategies with long-term growth themes and prudent risk management practices, investors can position themselves for success in the dynamic and ever-changing realm of the financial markets.
