In his current avatar as the CIO Equity, Rajah is trying to improve the bandwidth of his fund management team. One of the top and most respected fund managers of the Indian mutual fund industry, he manages Franklin Prima Plus and Franklin India Flexi Cap. He also manages several Fund of Funds. Rajah's prior stints were in Tata Steel (1986-88), Indbank Merchant Banking Services (1990-94) and Kothari Pioneer (1994). Sukumar is an alumnus of University of Roorkee and IIM (Bangalore)
Do you see a market crash in the near future?
It's difficult to predict the direction of the market. While the recent rally has been liquidity driven, on a fundamental basis we continue to be positive about the economy and corporates.
What is the strategic and tactical orientation of your fund?
The fund focuses on wealth creating companies whose competitive advantage will translate into superior return on capital. We follow a bottom- up stock picking approach and choose the best companies, irrespective of sector classification.
This fund tends to focus more on growth companies with a predominant exposure to large-caps.
Which are your top sector preferences?
Since we adopt a bottom-up investing style, the sectoral allocations are a derivative of the individual picks rather than any top-down views. Overall, we expect well-managed companies taking advantage of the buoyant domestic demand, increased capex and growing offshoring story to deliver superior, risk-adjusted, long-term returns. As on September, the top sectors in our fund were financial services, consumer non-durables and media.