Standard Chartered Bank views India as a key component of its investment portfolio, particularly favouring large-cap investments as there is a higher margin of safety.
Speaking to CNBC-TV18, Fook Hien Yap, Senior Investment Strategist at Standard Chartered Bank, explained the bank's approach, stating, “We have a barbell approach; on one hand we like cyclical sectors like industrial and discretionary but on the other hand we also want to balance it with healthcare, which is a bit more of a defensive approach. So, our preference is still with the large caps this year.”
The barbell strategy involves splitting an investment portfolio into two extreme ends of the risk spectrum -- low-risk assets like government bonds for safety, and high-risk assets like stocks for growth -- minimising medium-risk investments.
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“In equities, we think earnings will continue to be positive and economic growth in India, that is positive to stay invested over time,” he said.
When discussing global markets, he indicated that the bank holds a higher allocation of global equities, with India being included in this allocation. However, he stated that the bank's preference lies with the US and Japan, and within Asia excluding Japan, they prefer Korea.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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