Wealth Forum published an interview with Venugopal Manghat, Head - Equities on August 7, 2018. In this interview Mr. Manghat takes us through the investment strategies of L&T India Value Fund, fund performance, portfolio holdings, market outlook and key sectors to look at.
Wealth Forum: While your fund has a very impressive long-term top quartile track record, the last 6 months seem to have been rough, relative to market and peers. What has caused the dip in performance and what steps are you taking to get performance back on track?
Venugopal Manghat: In this calendar year, the market has become extremely risk averse which meant that investors pulled out money from stocks within the universe that were performing well and moved money into high quality predictable growth stocks despite their rich valuation.
Since the fund has a strict value orientation and therefore, a strong focus on valuation, it did not participate in this move. Hence, on both counts, one due to the correction in the stock prices of some of the holdings and two, the lack of high quality, expensive stocks in the portfolio, it suffered. These are phases in the market and in the long run, such skewness will get evened out. Steps are being undertaken to achieve best balance in portfolio orientation over the short term without losing the value. The category is also new (post the reclassification of schemes) and many of the competing funds have had a different past and have never had a strict value orientation.
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