0 months ago
Bajaj AMC Sees Undervalued Equities, Favors Bottom-Up Stock Selection
Bajaj AMC manages money that people invest in companies.
It thinks many Indian shares may still be priced lower than their potential value.
However, it does not want to choose investments only by looking at whole sectors.
Instead, it is studying individual companies to find the stronger ones.
The fund is watching trends such as new technology, more manufacturing in India, infrastructure building and healthier lifestyles.
It has invested in areas including aerospace and semiconductors.
It is cautious about IT companies because it does not yet see strong improvement in their profits.
The fund house is also preparing new investment products for investors.
Bajaj AMC believes Indian equities remain undervalued, but is selecting stocks company by company after rallies in mid- and small-cap shares.
The fund house is tracking megatrends including digitisation, manufacturing, infrastructure, sustainability, healthcare, consumerism and urbanisation.
It has added exposure to precision engineering, aerospace and semiconductors while remaining underweight on information technology companies.
Bajaj AMC reported average assets under management of more than Rs 33,000 crore during the April-June quarter.
The fund house plans to launch a business cycle fund and is considering a specialised investment fund in the first half of the next financial year.
- Who
- Bajaj AMC, including equity leaders Chandan, Sorbh Gupta and managing director Ganesh Mohan.
- What
- The fund house is pursuing bottom-up equity selection, adding exposure to selected industries and planning new funds.
- Where
- India.
- When
- The article references the April-June quarter and says the specialised investment fund may launch in the first half of the next financial year.
- Why
- Bajaj AMC sees equity valuations as attractive but believes company-specific selection is important after rallies in mid- and small-cap stocks; it is cautious on IT because an earnings-upgrade catalyst is not yet visible.
Key facts
- Investment view
- Equities are considered undervalued, with stock selection conducted on a bottom-up basis.
- IT stance
- Bajaj AMC remains underweight on IT companies despite more attractive valuations.
- New exposures
- The fund house has added companies in precision engineering, aerospace and semiconductors.
- Observed megatrends
- Digitisation, technology transformation, Indian manufacturing, infrastructure, sustainability, health and wellness, consumerism and urbanisation.
- Average AUM
- More than Rs 33,000 crore in the April-June quarter, according to AMFI.
- Existing equity funds
- Large-cap, flexi-cap, large-and-mid-cap and small-cap funds, among others.
- Planned products
- A business cycle fund and potentially a specialised investment fund.
Quotes
Ganesh Mohan
Managing director of Bajaj AMC discussing specialised investment funds
“We definitely see it as an interesting product that has come in the Rs 10 lakh plus ticket size, with a clear differentiation from the regular mutual fund. This is a product we are definitely looking to launch. We will probably do that in the first half of next fiscal year, ”
businesstoday.in
“Except IT, we see every sector has some opportunity. But after the rally that we have seen in small caps and mid-caps, rather than picking by sector, we are going company by company on a bottom-up basis, which ones are better,”
businesstoday.in
Sources
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