Today, we had a meeting with Mr. Anoop Bhaskar who is Head Equities at IDFC AMC. Anoop is one of the best fund manager in India.
Presently, he manages IDFC Premier Equity Fund, IDFC Classic Equity Fund and IDFC Sterling Fund. In the past he has run funds like UTI Equity Fund, UTI Mid Cap Fund, Sundaram Select Mid Cap Fund etc.
Some of the important learning from the meeting with Anoop are as under:
- Two Biggest regrets which investors face are ‘Missed Opportunity’ and ‘Loss of Capital’. Its important that client have decent exposure in Equity but not overexposed so that client doesn’t have either of the regrets. Investor can’t be totally out of the market because equity market is overvalued. Decent exposure is important.
- Return expectation from equity should come down from this level. Equity is now expected to give 10%-12% return from here for next few years.
- Going forward, even 7% return from Debt will be difficult.
- GST is a big plus for Government Tax collection. Government tax revenue will go up and hence reduction in fiscal deficit and hence reduction in interest rate.
- Fair value of PE Ratio of market has changed. Because of low interest rates, the fair value of PE Ratio should be higher. So comparing current PE Ratio with long term historical average may not be correct.
- Investors who are ok with volatility should have decent exposure in Mid Cap because real wealth creation happens in this space. Mid Caps are expensive but then nothing else is cheaper.
- Recommends IDFC Classic Equity Fund to be added in portfolio which has mandate of investing 70% in Large Cap and 30% in Mid Cap.