Prior to joining Principal AMC, R Srinivasan worked as a fund manager with Imperial Investment Advisors. Srinivasan has degrees in commerce and financial management. He has been managing Principal Tax Savings and Principal Personal Tax Saver since July 2005.
Do you see a market crash in the near future?
We don't have any opinion on the short-term levels of the market. From what we see, euphoria exists in certain segments of the market and extreme pessimism in others. Standard deviation of expectations and valuations are quite high and this will provide an opportunity for bottom-up stock selectors to generate decent alpha over a longer period.
What is the strategic and tactical orientation of your fund?
Being an ELSS product, the fund has a clear mandate for long-term investment. Hence, the portfolio strategy is essentially bottom-up with a focus on less visible stocks with a high-return potential. We look for positive fundamental change and/or attractive valuations. Though short-term risks, as defined by relative liquidity and volatility, tend to be higher in such a strategy, our objective is to drive alpha creation through our ability and willingness to adopt a longer term perspective. We also hold a good bit of preferred large caps to reduce benchmark risks.
Which are your top sector preferences?