Regional funds maintain overweight position on India, says Mirae Asset Global

Mirae Asset Global’s regional funds continue to maintain an overweight position in India. The fund allocated a higher percentage of its portfolio to Indian investments compared to the benchmark or other regions, which suggests that Mirae Asset Global's regional funds are optimistic about India's economic prospects and expect favourable returns from their investments in the country.

In an interview with CNBC-TV18, Rahul Chadha, CIO of Mirae Asset Global Investments discussed the overweight position of regional funds in India, the performance of large private sector banks, the real estate sector, and the outlook for new-age stocks.

He said, "We have always liked the India story, more so post-COVID recovery, which has happened, and it has done well for us in our portfolios, our regional funds are still kind of an overweight India. But in recent, I would say, days we are taking some money off the table, particularly in the Indian mid-caps.”

Meanwhile, talking about India's portfolio, Chadha said large private sector banks in India have been favourably positioned. These banks have likely benefited from favourable market conditions and robust operational performance.

He also noted that the real estate space has experienced significant gains over the past 3-4 years. However, he mentioned that some investors have decided to take profits and reduce their exposure to this sector. “Real estate is a space we have like for the last 3-4 years.

These stocks have been multi-baggers for us, but with this thesis of tightening liquidity, slowing growth, I think temporarily one can take some money off the table in that space,” said Chadha.

Talking about new-age stocks, Chadha expressed the possibility of slower gains for new-age stocks, specifically mentioning Nykaa as an example. These stocks have witnessed substantial growth over the past six months, and Chadha suggested that their upward trajectory may slow down.

However, he also highlighted the potential for better entry points in the next 6-9 months for structurally strong companies. This presents an opportunity for investors to consider these stocks when valuations become more favourable.