Looking at real estate theme via home improvement-related stocks: Invesco MF’s Taher Badshah

Looking to play the real estate theme via home improvement-related stocks, discusses Taher Badshah, CIO-equities at Invesco Mutual Fund, on Wednesday, in an interview with CNBC-TV18.

He said, “The sub-parts of the real estate sector that we wanted to play through was especially the residential real estate sector. We have probably not found appropriate vehicles to play, and entities that are appropriately positioned for that opportunity to come by. So, for one reason or the other, we have not been able to identify the bottom-up opportunity within that.”

“Therefore, that’s exactly the reason why we are settled for the first derivative of real estate, which is through some of these home improvements or consumer discretionary, white good elements. That’s how we approach the sector as of now, maybe things can change over time, but that is where our constraint has been,” said Badshah.

On power stocks, Badshah said, “There is a play here. These stocks have not done typically well over the last many years, and there is a near-term possibility that growth in some of these might be higher, given the fact that we are opening up, and the reflation trade will lead to higher levels of power demand in the near-term. So, from that proposition, we have got exposure to few utilities on the power side.”

For the entire interview, watch the video.