Krishna Sanghvi has been managing three schemes at Kotak since January this year: Kotak 30 (equity), Kotak Balance (balanced) and Kotak Income Plus (hybrid MIP). In his stint with different group companies - Kotak Mahindra Primus, Kotak Mahindra Finance and Kotak Mahindra Old Mutual Life Insurance - he has gained experience in credit appraisal and risk. He also had a two-year stint with IDBI. Sanghvi is a commerce graduate, cost and work accountant and holds an MMS (Finance) from NMIMS, Mumbai and CFA from ICFAI.
Do you see a market crash in the near future?
Considering the Indian economic growth at a CAGR of over 8 per cent during the past five years and the likely sustainability of this growth rate over the visible future, we expect India to remain an attractive investment destination for global capital seeking equity assets. We also believe that domestic investors will continue to participate in equity markets either directly or through mutual funds and insurance companies.
Given the expectations of strong economic growth along with a better visibility that will attract investors, we do not expect any major crash in the equity markets. The crash, if any, may be on account of any event (domestic political or international economic). While the recent run up in stock prices has been quite rapid in terms of the time period, we should be ready for a correction that may be more in nature of a consolidation rather than correction.
What is the strategic and tactical orientation of your fund?
The fund continues to focus on its strategy of having a large-cap orientation with a relatively less exposure to the mid-cap segment (usually not exceeding 20 per cent). We believe that this strategy has worked for the fund over a longer period and we expect to maintain this approach.
Which are your top sector preferences?
Infrastructure (Capital Goods, Engineering, Infrastructure Developers)