Experts discuss road to financial freedom through strategic investments
As India gears up to commemorate Independence Day, it's crucial to understand the path to achieving financial independence and formulate a strategic investment approach to optimise returns. To delve into these matters, CNBC-TV18 spoke to Devina Mehra, the Founder, Chairperson & MD of First Global, and Trideep Bhattacharya, CIO-Equities at Edelweiss AMC.
One big reason for the optimistic mood all around is also how well stock markets have done. After all, a booming stock market means optimistic corporations, willing to raise money, invest, and hire. It is a virtuous cycle.
As India gears up to commemorate Independence Day, it's crucial to understand the path to achieving financial independence and formulate a strategic investment approach to optimise returns. To delve into these matters, CNBC-TV18 spoke to Devina Mehra, the Founder, Chairperson & MD of First Global, and Trideep Bhattacharya, CIO-Equities at Edelweiss AMC.
Mehra highlighted that the current risk lies more in abstaining from investments rather than engaging in them. She emphasised that refraining from investments increases the likelihood of missing out on potential market upswings, and the chances of a market crash are minimal at this juncture.
She said, “That the risk now is in not being invested rather than being invested because you are much more likely to miss out on an up move and the likelihood of a crash is minimal. Even today, I would say the risk of a crash is far lower and therefore, you should remain invested because the fact of the matter is that in markets, it is much more likely that if you sit it out, you will miss out on an up move.”
Mehra also noted that, fundamentally, the landscape appears favourable. While some concerns exist when examining the economy from a medium to long-term perspective, but not so much on the corporate and stock market side.
Bhattacharya discussed their historical overweight’s in the financials and capital goods sectors. Within the financial sector, there's a shift towards focusing more on non-banking financial companies (NBFCs) rather than traditional banks, which have historically held more prominence.
In the capital goods sector, the shift is towards engineering, procurement, and construction (EPC) players, moving away from a historical focus on equipment manufacturers.
Bhattacharya pointed out that, in terms of incremental changes, attention is turning towards real estate, pharmaceuticals, and select consumer discretionary segments. Over the past three to six months, they have increased their capital allocation to these sectors.
He said, “Real Estate, in my opinion, is in the middle of a five-to-seven-year cycle so we have been structurally bullish, but incrementally as we have seen correction in some of those stocks, the indirect plays on real estate, that's where we have added on."
"Pharma, I think was something over the last three, six months, we have got incrementally bullish on the US scenario, US pricing scenario so there we've added a few players in our portfolio to work to that effect. So that will be broadly the areas that we incrementally looked at.”
First Published: Aug 14, 2023 7:16 PM IST
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