Quant MF CIO finds these sectors appealing
During a discussion with CNBC-TV18, Sandeep Tandon, the Founder and Chief Investment Officer of Quant Mutual Fund, said that the fund’s focus is on larger PSU themes, encompassing sectors such as oil marketing companies (OMCs), metals, mining, PSU banks, and railways.
Sandeep Tandon, Founder and Chief Investment Officer of Quant Mutual Fund, told CNBC-TV18 that the fund’s focus is on larger public sector unit (PSU) themes, encompassing sectors such as oil marketing companies (OMCs), metals, mining, banks, and railways.
He believes that despite a significant growth in absolute terms, these PSUs continue to present highly appealing investments relative to the broader market, benchmark indices, and specific industry sectors.
“It is our theme which we play, but we like to play a bigger theme, bigger companies, bigger market cap companies rather than buying very low float companies,” he said.
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However, Tandon is cautious on private banks even though they are attractive from a valuation perspective. "But again, that is also very subjective whether these multiples can last for the longer term when earnings deterioration is happening; in particular, the credit growth is also not coming up to that extent," he said, adding that the fund does not own any of large private sector banks anymore.
“For us to go all out and say this is the time, like the way we did in pharma or the way we did in PSU or metal, I don't think that time has still come and that is the reason we are happy to hold PSU banks over private sector banks in our portfolio,” he said.
Discussing his view on broader market, Tandon noted that retail involvement has been robust this year and is expected to persist at a similarly high level.
“I expect the foreign direct investment (FDI) and foreign portfolio investors’ (FBI) record participation come in the calendar year 2024 because we have seen the signs of nervous global investors who have participated in China not made money. So, there is an urgency to shift money and that is the reason whenever fall will happen very sharp, you will see a lot of money will be attracted towards Indian markets.”
Also Read | Here's why Quant Mutual Fund's founder Sandeep Tandon is bullish on the PSU and mining sectors
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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