'Markets not cheap; keep return expectations low'

An IIT Kanpur graduate, Abhishek Singh brings over 15 years of experience in the financial markets. Starting his career as a risk manager, Singh joined DSP Mutual Fund in 2021 in its equity division. Currently the Vice President and Fund Manager at DSP, Singh oversees three hybrid and one equity scheme - DSP Top 100 Equity Fund - with total assets worth Rs 17,300 crore. In this interview, Singh delves into his investment philosophy and why one should adopt 'simplicity' in investing. He also shares his outlook on the Indian equity market and the sectors he is optimistic about. How would you summarise your investment philosophy? What are the core principles driving your decision-making process? I have a few core beliefs. One is to make consistent money without being lucky; you must buy something for less than its intrinsic worth. You are trying to buy a $1 bill for, let's say, 80 or 60 cents, so you have to buy cheap, and that's the first belief. The second belief is that nobody knows. At DSP, we publish a document called 'Transcript,' and end it with a slide where an expert predicted something that turned out wrong. So, life and markets have a habit of surprising the consensus. If you put one and two together, then the only intelligent way to operate, in my belief, is to buy low-impact expectations. You buy stuff where the market is building in very benign growth or has benign expectations of improvement in profitability. When a significant pain has already been reflected in price, the market can surprise you positively. This is the fundamental methodology I employ with my portfolios. The approach is consistent, whether it's an equity or a hybrid fund, and you have one portfolio in your mind that you try to express in differ