Valuations may be high, but India's long-term story remains unshaken: Swarup Mohanty

Economic Times

21-07-2025

ET Bureau
We have to grow at 6% is our house commentary, but that 6% versus 2 and that is something which people need to internalise.
"While there is an impact of tariffs, we can be on our own in our own capacity and then that is something which we need to realise that our cars can be consumed by our own people," says Swarup Mohanty, VC & CEO, Mirae Asset Investment Managers.
So, much work goes on behind what you do, I mean 17 years old fund, I was just looking at that, 45 number of schemes and an aum size of over two lakh crores. What does it feel like to have this kind of journey clocked in in 17 years.
Swarup Mohanty: No, it is a very humbling experience. First of all, always a humbling experience to be in a fiduciary role. I mean to enjoy the trust of somebody else's money is very overwhelming to start with and then when we started as a global asset manager, today we stand in India as the only organic global asset manager in the country. It has not been very easy for global asset managers and then to be sitting with over 70 lakh folios is something which we had not thought of. Maybe AUM we would have thought of, but to be enjoying so many investors trust is pretty overwhelming. One is…
That is the India story right, rising with India.
Swarup Mohanty: Yes, absolutely, rising with India.
But this 17 years of experience, you are a Korean company, India as a market was something that I do not think so Korean at that time must have thought that will flourish like this. I really want to understand the transition in last 17 years as an Indian investor as a Korean company that you have witnessed.
Swarup Mohanty: I must tell you that our chairman Mr Hyeon Joo Park is a fund manager himself. He started the mutual fund industry in South Korea. We are probably the first financial company to set out of South Korea to build base. We came in 2006-2007 and when the team came to India and then there was this call from here to our chairman why are we here, there is nothing here, the reply was that is exactly why we are here. Trust me and I got the chance to narrate the same story to the prime minister of this country is that sometimes I wonder what they see in India that we do not see. They are so one-sided in their view on the structural growth of this country is incredible to sort of note because I have sat in rooms of 200 people, 199 Koreans and me the only Indian and on stage our chairman says that only one country will flourish in the next 10 years. One country when you single out, you sort of think what is happening. Maybe they can see things more in a neutral manner from the outside, some things we get a little biased about. We were just discussing the more boring the more biased you make it, the better the outcome.
But having said that in the last 17 years and we must give credit where it is due, the Indian investor also has come a long way. I mean, 17 years back who would have thought that your fund alone is going to manage the AUM size that you have. Having said that, the Indian investor always gets edgy with the news headlines and all the noise around. What is it that you are making of all that is happening right now, this concern around what is going to happen with the tariffs, what is going to happen on the global slowdown front and of course, the India story wherein valuations are always a question mark.
Swarup Mohanty: Yes, one, of course, when a country like the US starts changing in behaviour, everybody else's behaviour also starts changing, we are in that phase. But as this I mean tenure starts expanding, people will accept that and form their own opinion. I personally feel that from defence to capital markets every country is now reworking its own strategy, that is the time and such a phenomenal time to be sitting in the world at this moment and then probably each country will start defining their own style in the world and then probably India will shine in that is my bet on it. The second part is from the investors. I mean today if you look at the market and all of you kind of talk about it many times is that the market shifted to that single retail investors who have come together and piled this 26,000, 27,000 crores of support to the market on a monthly basis and that is where is the behavioural shift. I had not thought that I would see this before my retirement. I would joke about it, but it is so fascinating to see that and as the demography is shifting, right now three generations are investing together which had never happened in my career. My father's generation, my generation, my sons, my sons' generation is something which will turn it around. I am extremely bullish of their behaviour. I am very confident of their ability to see the long-termness if there is a word like that of the India story and good days ahead is what I can say.
But what do you make of the current market construct? Like we are saying with all the talk around tariffs and still question mark on which way the tariffs are going to go for India and we are still awaiting that 'letter' and valuations which are not really as comfortable as we have seen in the past. What is the next one year looking like with all the uncertainties around?
Swarup Mohanty: My personal take is India is a structural growth story that is a given globally. If there is a growth story, it is India. So, based on that India will definitely have its own negotiation powers, negotiation levers when it comes to that negotiation table for the tariffs. I mean, the fact is every country would like to participate in this country because wealth is being created at an individual level as we speak and it will be the largest consumption market a third probably to US, China we are there. So, while there is an impact of tariffs, we can be on our own in our own capacity and then that is something which we need to realise that our cars can be consumed by our own people. Our produce can be consumed by our own people. So, net-net we are at this moment a very isolated story from the rest of the world. When you do the headlines compare whether those headlines appeal to our country, it is very strange to say that India will remain isolated on data points and strong consistent data points. While some of us get disappointed when growth comes down to 6%, world is growing at 2-3%. It is not good. But we get disappointed at 6%. We have to grow at 6% is our house commentary, but that 6% versus 2 and that is something which people need to internalise.
But we need to have high benchmarks for our market.
Swarup Mohanty: We should.