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Economic Times
4 days ago
- Business
- Economic Times
India's long-term growth story intact, market outlook constructive: Sumit Bhatnagar
"In terms of sector preferences, we're increasingly positive on the consumption theme. We believe consumption is at an inflection point, driven by improvements in both rural and urban demand. Rural consumption is benefiting from a good monsoon so far, healthy reservoir levels, and higher MSPs. This should lead to a continued pickup in rural economic activity," says Sumit Bhatnagar, Fund Manager, LIC MF. ADVERTISEMENT At present, we consider India to be a safe haven amid global tariff uncertainty. But one thing is certain — Trump's tariff-related moves and the associated uncertainties are likely to continue growing. What is your short- and long-term perspective on the domestic markets? Sumit Bhatnagar: As far as global markets are concerned, we've been witnessing intermittent bouts of volatility, driven by both economic and geopolitical factors. Regarding Trump, this issue has been ongoing for the last two to three months. So, a large part of it is already priced in, barring some short-term surprises that may arise from his announcements related to countries like Mexico or Brazil. However, when it comes to India, the outlook remains positive. Domestically, we are constructive on Indian markets simply because we expect economic activity to pick up. Along with that, we anticipate a corresponding improvement in corporate earnings — supported by lower interest rates, ample liquidity, and valuations that are more or less in the fair zone, especially when looking at the broader indices. From a medium- to long-term perspective, India remains very well-positioned. So, you're strongly backing the India growth story. But having said that, I'd like to know about your sector-specific strategies. There's been a lot of rotation happening — so what's on your radar? Which sectors are the hits and misses for you? Sumit Bhatnagar: In terms of sector preferences, we're increasingly positive on the consumption theme. We believe consumption is at an inflection point, driven by improvements in both rural and urban demand. Rural consumption is benefiting from a good monsoon so far, healthy reservoir levels, and higher MSPs. This should lead to a continued pickup in rural economic activity. Additionally, tax cuts that have already been implemented are expected to play out over the next six to nine months. On top of that, regulatory rollbacks by the RBI for lending institutions, lower interest rates, and ample liquidity should also support consumption growth. ADVERTISEMENT Looking ahead, the upcoming pay commissions will be a key driver as well. The central pay commission is due next year, followed by state pay commissions the year after — together putting nearly ₹3 lakh crore into the hands of consumers. There is also talk of GST rationalisation in the FMCG space, which should provide an incremental of this suggests that after five years of underperformance, FMCG may be at the start of a recovery. While this quarter's numbers may be muted, our outlook for the next two to three years is positive. Accordingly, we've increased our exposure to consumption in our portfolios. ADVERTISEMENT We've just seen the WPI numbers come in at -0.13%, which puts us in deflationary territory for wholesale prices. CPI, too, remains well below the 4% benchmark. In the current scenario — where crude is stable around $70 and the interest rate trajectory is relatively clear — which sectors do you see getting re-rated, and where do you expect de-rating? Sumit Bhatnagar: When it comes to re-rating, we are optimistic about sectors like cement and consumption. In cement, if pricing holds and demand picks up post-monsoon in the second half, we could see earnings improve. As discussed earlier, we also expect a significant pickup in consumption, both rural and urban, in the second half of the two sectors — cement and consumption — are where we foresee meaningful re-rating going forward. ADVERTISEMENT On the other hand, sectors exposed to global dynamics, like IT and metals, could face de-rating. This would be driven by continued global uncertainty and economic weakness in key markets such as the US, China, and Japan — which are critical drivers of demand for commodities like metals. So, those would be the sectors where we see potential for de-rating. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
India's long-term growth story intact, market outlook constructive: Sumit Bhatnagar
"In terms of sector preferences, we're increasingly positive on the consumption theme. We believe consumption is at an inflection point, driven by improvements in both rural and urban demand. Rural consumption is benefiting from a good monsoon so far, healthy reservoir levels, and higher MSPs. This should lead to a continued pickup in rural economic activity," says Sumit Bhatnagar , Fund Manager, LIC MF . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo At present, we consider India to be a safe haven amid global tariff uncertainty. But one thing is certain — Trump's tariff-related moves and the associated uncertainties are likely to continue growing. What is your short- and long-term perspective on the domestic markets? Sumit Bhatnagar: As far as global markets are concerned, we've been witnessing intermittent bouts of volatility, driven by both economic and geopolitical factors. Regarding Trump, this issue has been ongoing for the last two to three months. So, a large part of it is already priced in, barring some short-term surprises that may arise from his announcements related to countries like Mexico or Brazil. However, when it comes to India, the outlook remains positive. Domestically, we are constructive on Indian markets simply because we expect economic activity to pick up. Along with that, we anticipate a corresponding improvement in corporate earnings — supported by lower interest rates , ample liquidity, and valuations that are more or less in the fair zone, especially when looking at the broader indices. From a medium- to long-term perspective, India remains very well-positioned. So, you're strongly backing the India growth story. But having said that, I'd like to know about your sector-specific strategies. There's been a lot of rotation happening — so what's on your radar? Which sectors are the hits and misses for you? Sumit Bhatnagar: In terms of sector preferences, we're increasingly positive on the consumption theme. We believe consumption is at an inflection point, driven by improvements in both rural and urban demand. Rural consumption is benefiting from a good monsoon so far, healthy reservoir levels, and higher MSPs. This should lead to a continued pickup in rural economic activity. Live Events Additionally, tax cuts that have already been implemented are expected to play out over the next six to nine months. On top of that, regulatory rollbacks by the RBI for lending institutions, lower interest rates, and ample liquidity should also support consumption growth. Looking ahead, the upcoming pay commissions will be a key driver as well. The central pay commission is due next year, followed by state pay commissions the year after — together putting nearly ₹3 lakh crore into the hands of consumers. There is also talk of GST rationalisation in the FMCG space, which should provide an incremental benefit. All of this suggests that after five years of underperformance, FMCG may be at the start of a recovery. While this quarter's numbers may be muted, our outlook for the next two to three years is positive. Accordingly, we've increased our exposure to consumption in our portfolios. We've just seen the WPI numbers come in at -0.13%, which puts us in deflationary territory for wholesale prices. CPI, too, remains well below the 4% benchmark. In the current scenario — where crude is stable around $70 and the interest rate trajectory is relatively clear — which sectors do you see getting re-rated, and where do you expect de-rating? Sumit Bhatnagar: When it comes to re-rating, we are optimistic about sectors like cement and consumption. In cement, if pricing holds and demand picks up post-monsoon in the second half, we could see earnings improve. As discussed earlier, we also expect a significant pickup in consumption, both rural and urban, in the second half of the year. These two sectors — cement and consumption — are where we foresee meaningful re-rating going forward. On the other hand, sectors exposed to global dynamics, like IT and metals, could face de-rating. This would be driven by continued global uncertainty and economic weakness in key markets such as the US, China, and Japan — which are critical drivers of demand for commodities like metals. So, those would be the sectors where we see potential for de-rating.
News18
15-05-2025
- Business
- News18
LIC Mutual Fund Re-Introduces 5 Key Equity Schemes: All You Need To Know
Last Updated: The reintroduction is part of LIC's 'Funds in Focus Q1 FY25' initiative and the schemes are Value Fund, Small Cap Fund, Multi-Asset Fund, Dividend Yield Fund and Focused Fund. LIC Mutual Fund has reintroduced five of its flagship equity schemes as part of its strategic initiative, 'Funds in Focus Q1 FY25', aimed at aligning investment options with evolving market dynamics and investor preferences. 'We are re-introducing these five flagship equity schemes, which have the potential to generate significant wealth for investors with diverse financial needs over the long term," Yogesh Patil, chief investment officer (equity) at LIC Mutual Fund, said. Which Schemes Are Back? The five re-launched schemes are: LIC MF Value Fund LIC MF Small Cap Fund LIC MF Multi-Asset Allocation Fund LIC MF Dividend Yield Fund LIC MF Focused Fund These schemes span various investment themes and risk profiles, catering to long-term wealth creation goals for investors with different financial needs. Assets Under Management On the Rise LIC Mutual Fund's assets under management (AUM) saw a healthy uptick, rising 11% to Rs 37,554 crore in April 2024, up from Rs 33,854 crore in March. The growth reflects increased investor confidence and strategic fund positioning in line with market opportunities. What It Means for Investors For both new and existing investors, the reintroduction of these funds offers renewed opportunities to diversify portfolios and benefit from LIC MF's long-term equity strategies. With markets constantly evolving, such timely product realignment is expected to help meet changing investment goals more effectively. First Published: May 15, 2025, 11:02 IST
Business Mayor
15-05-2025
- Business
- Business Mayor
LIC Mutual Fund reintroduces five flagship equity schemes; details here
As of April 2025, LIC Mutual Fund manages a total of 41 schemes, comprising 15 equity funds, 9 debt funds, 6 hybrid funds, 1 solution-oriented fund and 10 ETF, index and other funds. The fund house has a robust monthly SIP inflow. Overall, AUM has seen a notable rise from Rs 33,854 crore in March 2025 to Rs 37,554 crore in April 2025, registering a growth of 11%. Also Read | Nippon India Small Cap Fund exits IndusInd Bank, Adani Wilmar, 3 other stocks in April The funds that are being reintroduced are LIC MF Value Fund, LIC MF Small Cap Fund, LIC MF Multi-Asset Allocation Fund, LIC MF Dividend Yield Fund, and LIC MF Focused Fund. 'We are reintroducing these five flagship equity schemes, which have the potential to generate significant wealth for investors with diverse financial needs over the long term. We believe investment objectives of these funds will be aligned with aspirations of the young as well as new investors, catering to their diverse financial goals, and deliver better returns notwithstanding the challenging market conditions,' said Yogesh Patil, Chief Investment Officer – Equity, on the reintroduction of equity schemes. About these 5- flagship funds: (a) LICMF Value Fund Targets fundamentally strong companies trading below intrinsic value due to temporary market dislocations. Best suited for long-term investors seeking undervalued opportunities with solid financials and sound business models. Read More Capital Daily sees further GBP decline amid BoE policy stance Fund Managers: Nikhil Rungta and Mahesh Bendre (b) LICMF Small Cap Fund Invests in emerging, scalable businesses aligned with India's long-term growth. Focuses on early-stage, under-researched companies with high potential. Suitable for high-risk investors with a 5+ year horizon. Fund Managers: Nikhil Rungta and Mr. Mahesh Bendre (c) LICMF Multi-Asset Allocation Fund This fund aims to achieve a balance between risk and return by leveraging the diversification of different asset classes. It dynamically allocates across equity, debt and commodities (gold and silver) based on market conditions and economic outlook. This strategy is suited for long-term investors who are looking for superior risk-adjusted returns. Fund Managers: Nikhil Rungta, Sumit Bhatnagar and Pratik Shroff Also Read | BSE and One 97 among stocks that mutual funds bought and sold in April (d) LICMF Dividend Yield Fund Blends capital appreciation with dividend income by investing in companies with strong cash flows, consistent payouts and reinvestment-led growth. A fit for long-term investors seeking stable yet growing income. Fund Managers: Mr. Dikshit Mittal and Mr. Karan Doshi (e) LICMF Focused Fund A concentrated portfolio of up to 30 high-conviction stocks, backed by deep research and meaningful allocations. Offers flexibility across sectors and market caps which is ideal for growth-oriented investors seeking an actively managed yet focused strategy. Fund Managers: Jaiprakash Toshniwal and Sumit Bhatnagar
Economic Times
08-05-2025
- Business
- Economic Times
Go for a barbell strategy in cement; a strategic repositioning in BFSI and FMCG: Sumit Bhatnagar
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Fund Manager,, recommends a barbell strategy for cement investments, combining segment leaders with companies benefiting from regional price hikes. LIC MF's portfolio adjustments involved reducing IT and capital goods holdings while increasing positions in BFSI and FMCG. Allocations shifted from mid and small-cap to large-cap stocks, reflecting a strategic this event out of the way, now the ball is in Pakistan's court on what level of escalation they do. Going by history, we do expect markets to move back to the usual trajectory. We are cautiously optimistic about the markets over the short term. We believe that leaving aside the global uncertainty, Indian macros are shaping up pretty well and with the steps that government has taken in so far as your budget was concerned or the liquidity infusion measures that were taken or the regulatory easing that was done, we expect our economy to perform decently from here on and we think 6.5% GDP growth is definitely a doable as also we expect decent earning growth going forward led by the measures that the government has view defence as a structural opportunity. The government's focus on indigenisation plus the focus on making them the export platforms is a very structural story to play out. While in the near term we can say a lot of positives are priced in, but the opportunity definitely exists both from indigenisation and export perspective. While we have substantial deployments in the defence space, maybe it is time to take some profits off the table in near expect consumption to pick up from here on. The kind of steps that the government has taken, the tax cuts that have happened in the Budget which should support urban consumption, plus the liquidity measure should lead to reduction in interest rates, plus the benign inflationary environment, the way inflation has cooled off. All these should support your urban the same time, rural consumption should get support from good crop expectation, normal monsoons, and decent reservoir levels. We expect FMCG, which has been an underperformer for the last 18 or 24 months, to start showing some bit of a pickup in both volume terms as also some bit of an improvement on margins as us, the key deletion or key reduction in weight was around IT, as also a little bit of profit taking across the capital goods space. While we added positions in BFSI, as also some bits of positions in FMCG, which even now we are looking to build positions in as we get the right valuations. As far as market-cap-wise allocations go, we have trimmed some positions in mid and smallcap space while we have added the allocations to largecap first of all, rerating, I would say markets are broadly fairly valued. So, it would be difficult to say a particular sector is getting rerated. We would rather focus on individual stocks where there is earnings visibility, where there is a tailwind appearing, where we see select pockets where we can see ratings. But at a sector level, we believe most of the sectors are fairly priced at this point in time and so far as earnings growth is concerned, we do expect decent earnings from the consumption theme. BFSI and defence also should post decent earnings and sectors like cement should do in so far as segment is concerned, rather than taking individual names, I would suggest a barbell type of a strategy where you play the segment leaders on one end and companies that are likely to benefit from the price hike that we have seen in the regions like south or east. So, it can be a combination of this combination of largecap and a mid or smallcap company within this sector. If someone is still looking for compounders, then even companies based out of the north and east can be looked at.
