'Active investing will deliver alpha in ways passive strategies can't'

How is your team viewing the current market valuations and preparing for possible corrections? Valuations are broadly expensive, mainly down the capitalisation curve and certain micro sectors. Large caps are currently more attractive, with stock selection crucial in lower capitalisation buckets. At PGIM India AMC, We don't take large cash calls; we remain true to fund mandates. To prepare for potential corrections, we stick to portfolios with degrees of quality and high earnings growth, as they tend to fall less in sharp drawdowns. We avoid overpaying for unsustainable growth; we don't buy stocks far from their intrinsic fair values. The Nifty trades at about 24 times one-year forward earnings, above its long-term

This article was originally published on November 04, 2024.