"Growth should be a subset of value"

We interviewed Mr Neelesh Surana, the CIO of Mirae Asset Investment Managers India Pvt. Ltd. He is a renowned fund manager in the country and has played a crucial role in building the Mirae brand in the asset management industry over the last 13 years. His consistent outperformance over the long term has been evident across most of their equity funds. During the interview, we discussed Mr Surana's assessment of various sectors, the performance of his funds , some of their portfolio decisions, and how the team at the AMC has evolved in recent years. The following is an edited transcript of the interview. What are the three key drivers and risks to India's equity growth story in the next three to five years? Once the ongoing chaos related to reset of interest rates to higher rate regime is settled, investors will hunt for growth. India's longer-term growth is superior, both in absolute terms and relative to other economies. Additionally, we have two new growth areas in terms of manufacturing exports and services exports. The Indian corporate sector is resilient, with strong balance sheets and an improved ability to withstand shocks. With regard to risk, the extent of the ongoing global slowdown and its impact on exports need to be watched. Long-term risks, meanwhile, remain hinged on higher levels of oil prices. We understand Mirae Asset funds are overweight on Financials and select Auto and Pharma companies. What drives your conviction in these sectors? We like financials due to their strong balance sheets, provision for NPAs (non-performing assets), and improved cr

This article was originally published on May 04, 2023.