Investors switching from growth to value stocks, says Invesco’s Badshah

Over the last few months, investors have been shifting a part of their funds from growth stocks into value stocks, and that trend is accelerating, according to Taher Badshah, CIO- Equities at Invesco Mutual Fund.

Value stocks are those which appear to be quoting at a price below what its fundamentals indicate. Growth stocks are those which are expected to grow faster than the average rate for the industry in which they operate.

In an interview to CNBC-TV18, Badshah said his fund has been focusing more on value stocks than growth stocks.

“The move that started as a rotation from growth to value towards the end of last year has gained a bit of momentum given the fact that global yields have gone up in the recent past. Therefore, that part of the trade is still active and we see an acceleration of value or economy facing stocks doing well.”

PSU stocks in particular look attractive, Badshah said.

“The public sector undertakings (PSUs) have been at a discount in terms of valuations and continue to be so despite the fact that some decent rallies were seen in the past,” he said.

He said Invesco Mutual Fund will be launching a fund which will focus on being environmental, social, and governance (ESG) aware.

“We are in the midst of our launch. We think we are riding on a category which is made available by the regulator. We believe we have the right to win on two counts. One is the fact that Invesco globally is well positioned as far as ESG centric strategies are concerned. Second, we have had a significantly long track record in managing ESG strategies,” said Badshah.

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