Unlike many, this fund manager is not too keen on banking stocks

Who said this?

ICICI Prudential MF’s Anish Tawakley, who is the deputy CIO (Equity) at the fund house.

Why?

He said the banking system would struggle with deposits due to consolidation in the sector, which would put pressure on its income ratios and margins.

However…

Tawakley said that while they are underweight in banks, they are “overweight in mutual fund houses and insurance companies”.

Where is he looking to make money?

“I like quality and growth companies because they are market leaders. But I don’t like companies that fall in the middle. They are neither market leaders nor cheap.”

What kind of market conditions excite him?

“When either the economy is bottoming out, or people are still pessimistic. Or where capacity utilisation has peaked, and earnings are likely to plummet.”

Read the full interview

What is his strategy for the small-cap fund? Can active funds still generate alpha? Which sectors offer good value right now? Click below for the full interview.