'India to take advantage of foreign inflow, stock -specific approach better'

Copyright © HT Digital Streams Limit all rights reserved. India to take advantage of foreign inflow, share -specific approach, says Yogesh Patil of LIC AMC Ram Sahgal 5 min read May 26, 2025, 05:45 IST Yogesh Patil, investment officer, Equity at Lic Mutual Fund Management Ltd, has a continued low inflation and offer of domestic risk cap. Summary India will benefit from foreign investor flow due to a slowdown in the US, with low inflation and domestic capital-supporting stock markets, says Cio-equity at Lic Mutual Fund. Investors should consider diversified stocks in five years to consider funds for healthy returns. India will be one of the most important beneficiaries of foreign investor flow, with an expected slowdown in the US amid increasing trade tensions, according to Yogesh Patil, investment officer (CIO), fairness at Lic Mutual Fund BAT management Ltd. A sustained low inflation and the supply of domestic risk capital is likely to be a solid bosses effect in the LAT part of the part of the part, even if it is the growth in the base -effect in the part of the part, even if it is the growth of the part. Of the fiscal, Patil says. Investors are better off to follow a share -specific approach, he said. Edited excerpts: Reducing Indo pack voltage, US trading transactions and the rate cuts here has led to some recovery from the low of April 7. Is the worst behind the markets? How do we watch markets from here, and your returns compared to the past five years? Most of these well -known factors are already discounted in market prices. While investing in stocks, investors are always exposed to some unknown risks. As a result, investors should be ideally focused on the macro principles and expected growth in earnings. Also read: Boom in unlisted NSE shares radiates Gray Market Ambags. It is very clear that the US is open to negotiating the trade transactions. At home, we have a growing economy, stable macros, improving trading conditions, improving primary deficit, relatively stable currency and low inflation. A structural increase in discretionary consumption can further help economic growth. A sustained low inflation and supply of domestic risk capital probably serves as the wind of the stock markets. Earnings growth can drive share prices. Investors should expect a share -specific market. Investments in diversified stock-intercourse funds with a five-year timeframe can produce healthy risk-adjusted returns. FPIs seem to have returned to the market over the past month and a half. Will their inflow sustained, given the yields of the yield of the yield on the yield of fairness in respect of the US bond yield? We saw earlier that emerging market flow to the US, and foreign portfolios (FPIs) were underweight on Indian shares. As the US is expected to delay in the midst of trade wars, the money will be expected to move out of the US. While the dollar index tends downwards, investors move away from the US dollar and end up in gold and emerging market shares. India may be one of the most important beneficiaries of flow. The yield gap has a limited relevance. Is SIP the best mode for the small retail investor? As mentioned earlier, the Indian stocks are expected to do well in the medium term, as both domestic and foreign investors want to participate in the Indian growth story. The SIP is a disciplined method to invest in stocks. Investors who choose SIPs to try their equity investments are structurally positive for wealth creation at the investor level. The SIP book is also supportive for our stock markets. Also read: Why the bond market is not through a 22-year yield gap, there is an argument that earnings were better than what was estimated in Q4FY25. But if the growth in earnings is in a single digit, how do you justify Nifty/Nifty 500 valuations? The earnings growth in the first quarter of the FY25 was better than estimates. Analyst estimates were also somewhat subdued due to the expectation of a slowdown to Q3 numbers. Inventory valuations are also led by the prevailing interest rates in the economy. Low interest rates encourage investors to attribute higher multiples to shares in a growth market such as India. Earnings analysts will also take into account the lower financing costs. The base effect will also play favorably for the growth of earnings in the later part of FY26. Are you fully invested or keep your powder dry? Why? We do not hold high cash levels in our share portfolios. Our investment process expects us to make investment decisions after considering the fundamentals of the business, and not cash in the expectation of market movements. In most cases, it is useless to predict corrections. We also assume that our investors have made their asset allocation, and if they invest in equity schemes, they have handed us money to buy shares. Therefore, it makes little sense to keep high cash levels in stock schemes. In the current market, which sectors will you buy and which will you avoid? In Core, we are growing investors. We are looking for businesses in a favorable business cycle, with a promoter record of efficient capital award, a strong balance sheet, scalable business, reasonable capital returns and higher growth rates compared to peers. As a fund home, we look at emerging and growth sectors. The capital goods, engineering and discretionary consumption basket look positive. Also read: FPI assets regain $ 800 billion after four months, as the markets fall back, taking into account the current scenario, avoiding our low-growth and high-value companies. We tend to avoid higher multiples on new age loss companies. We avoid shipping, hard commodity and commodity chemicals. How is the CHURN on the portfolio level? We invest in the long run. Investing in high -quality companies with a long growth path and holding on to the shares for a long time helps us to take advantage of composition. We avoid excessive crackling in our share portfolios. But we can discuss whether the underlying investment thesis is changing. We tend to act quickly when there is a stock -specific development or an event that affects the broad market. On the regulatory front, Sebi allowed a new asset class, Specialized Investment Fund (SIF), with a minimum ticket size of £ 10 lakh. How does it form? Our financial markets are developing, and growing investor interests are evident in portfolio management services and alternative investment funds. The sieve, at the ticket size of £ 10 lakh, can be the perfect product with the right positioning. Investors in SIFs are expected to benefit from developed investment strategies and transparent work of mutual funds. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Economy #Trade #Trade Deal Read Next Story