Investment mantra: Look at the companies that are growing at twice the rate of economic growth and are available at reasonable valuations compared with their own history as well as that of the market.
Best call over the past few months: In the past 10 months, we have hiked the cash level to 25%. We raised allocation in defensive sectors such as telecom, consumer durables and pharma. Also, being neutral in construction and zero weightage to realty has helped.
Worst call over the past few months: Being overweight in metals. Their prices have cracked in the past two months.Top picks right now: Public and private sector banks, energy, oil and petrochemical-related stocks.
Advice to small investors: Invest in the market at current levels with a three-year perspective. The index is expected to deliver a CAGR of 15-20% over the next three years.
One thing investors must never forget: Equities is a long-term product and not meant for making money overnight. Go for the dividend payout option while investing in a fund. It allows periodic profit booking and is tax-free.
— Srividhya Rajesh is Fund Manager, Sundaram BNP Paribas Mutual Fund