'Look at multi-asset funds and BAFs in volatile markets'

In recent months, the Indian equity market has faced turbulence driven by global uncertainty and rising FII outflows. However, for ICICI Prudential AMC's Fund Manager Ihab Dalwai, this correction offers a prime opportunity to invest. He focuses on "underperformance, under-ownership and sectors facing temporary stress" as these segments provide a "strong margin of safety". Currently, Dalwai oversees assets worth nearly Rs 1.36 lakh crore across four funds, including the four-star-rated Infrastructure Fund and Large&Mid Cap Fund. In this exclusive conversation, Dalwai discusses why quality stocks, after a recent underperformance, present attractive entry points. He also shares insights on asset allocation in volatile markets, his stock-picking strategy and the reasons behind the Large & Mid Cap Fund's resilience. Can you share your investment philosophy and how it adapts to market cycles, especially during of high uncertainty? My thought process of investing is trying to identify segments or the pockets of the market undergoing any specific or temporary issues. However, from the medium to long term, the fundamental story of those companies or market segments is intact. One can classify this as a countercyclical or non-consensus style of investing. So, my hunt has always been to identify those market segments that today may be under-owned, disliked by the market or underperformed on a three-year basis. This is the general area I am focusing on. I don't want to bucket it into either a growth, quality or value style. I would be open to investing in any of the three segments. But, my initial focus is on underperformance, underownership and a market segment experiencing temporary stress. I feel this approach offers a strong margin of safety regarding the business value and the price I am willing to pay to acquire those businesses. What non-negotiable criteria must a company meet to make it into your portfolio? As minority shareholders in most companies, we can't influence their operating performance. I feel that a company's management, promoters or significant