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Economic Times
27-05-2025
- Business
- Economic Times
No value in market, it's time of growth investors; focus on alpha generation in new spaces: Prateek Agrawal
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , MD & CEO,, highlights a period of simultaneous emergence of high-growth sectors , reminiscent of the '90s software boom. He emphasizes focusing on alpha generation in these new spaces, rather than index performance. MOAMC portfolios encompass diverse growth areas like EMS, renewable energy, defence, NBFCs, capital markets, luxury, and new tech, seeking growth opportunities with sensible valuations.: For the Indian markets, the thing to look forward to is to benefit from low oil prices. Government finances could look significantly better than budgeted because lower oil means some bit of gains goes to the population, some bit of gains goes to the government. Government finances look good. Hopefully, either the growth, the spending increases or the borrowing reduces which means further downward pressure on interest rates. So, lower inflation and lower interest rates. We had two rate cuts. We may have two more and that makes it very good for risk asset classes like equity. So, that is the threat to look forward to for are uncertainties, for example will the US do a deal or not? But the direct impact of that at least in the immediate term on India should be very low. We export just about $80 billion in a $4.1 trillion economy and spaces that may benefit if the UK deal is of any guidance are hardly there in the are one economy which is very inward looking and that is a positive in a period like this, where so much is happening in the world. That is what it is for some bit of benefit will go into manufacturing and that is something we like; to airlines maybe. So, that is import parity pricing on cost. If the traffic increases, there would be higher margins, but not for banks, as if more rate cuts happen than anticipated, then the pressure on NIMs will start to manifest itself. NBFCs, yes, for the same reason that their input is money from banks and the cost of that would have seen investors still worrying a hell of a lot because a lot of events in the recent past have caused turmoil. The flows into mutual funds were not very strong in the last two months. This month could be an encore. So, it is not all one positive which is happening and which you missed is a good result season versus what was expected. A 3-4% earnings growth was expected, but we are getting much better earnings growth. So, there are things to fuel the rally forward even if we talk about the immediate term. Weaker dollars, DXY at sub-99 has happened after a long while, and that points to the dollar moving away from the US all over the world and if India sticks out as being slightly better, then we should get some share of foreigners would also be buying more than usual. Domestics will continue to buy. The IPOs are still some distance away. The big momentum would be some distance away. It is good for the secondary market. A one, one-and-a-half-month period is a sweet spot for the secondary there is no value. If you are hunting for value, this is not the market for you. Hunt for growth. There are two styles of making money, the value style and the growth style. The best of value is behind us. Being growth investors, lower interest rates with continued good growth outlook is a very good combo for growth investing . We think our time has growth toh hai (But there is growth). This is a period in the life of a country when several new spaces which offer strong growth not for one year but multiple years are all coming up at once. In the '90s, you got software. New space delivered huge growth for several years. In the same light, if we see the last five years and it is happening as we speak, many newer spaces are emerging in the market which offer the same combo. We have been saying this now like a parrot every time you have me that it is not a period of the index, it is a period of alpha. It is a period of these newer spaces where growth and sustenance of growth is of another order versus the we run is portfolios not single stock, single sectors. All the growth spaces find representation in our portfolio. Yes, EMS is there. Yes, renewable energy is there. Yes, defence is there. Yes, NBFCs are there. Capital market plays are there. Luxury is there and more. New tech is there. As for EVs, till now we have not found a name, and so it is not there but that is where growth is. Now, we have to find spaces where growth corrected for valuations make sense, which is what managers you look at our fund house, these are spaces you will find in practically all of our funds. That is the method in the madness of what we do. We are out and out growth investors. We think our portfolios are some of the highest growth in earnings portfolios in the country.
Time of India
27-05-2025
- Business
- Time of India
No value in market, it's time of growth investors; focus on alpha generation in new spaces: Prateek Agrawal
Prateek Agrawal , MD & CEO, MOAMC , highlights a period of simultaneous emergence of high-growth sectors , reminiscent of the '90s software boom. He emphasizes focusing on alpha generation in these new spaces, rather than index performance. MOAMC portfolios encompass diverse growth areas like EMS, renewable energy, defence, NBFCs, capital markets, luxury, and new tech, seeking growth opportunities with sensible valuations. There seems to be a bit of a pressure on the higher levels for the benchmark indices though we have seen almost a double-digit return from the April lows. What is the big theme that you are catching for the Indian markets right now? Prateek Agrawal : For the Indian markets, the thing to look forward to is to benefit from low oil prices. Government finances could look significantly better than budgeted because lower oil means some bit of gains goes to the population, some bit of gains goes to the government. Government finances look good. Hopefully, either the growth, the spending increases or the borrowing reduces which means further downward pressure on interest rates. So, lower inflation and lower interest rates. We had two rate cuts. We may have two more and that makes it very good for risk asset classes like equity. So, that is the threat to look forward to for India. There are uncertainties, for example will the US do a deal or not? But the direct impact of that at least in the immediate term on India should be very low. We export just about $80 billion in a $4.1 trillion economy and spaces that may benefit if the UK deal is of any guidance are hardly there in the market. We are one economy which is very inward looking and that is a positive in a period like this, where so much is happening in the world. That is what it is for India. When you say lower oil prices, are you saying buy banks and buy rate sensitives, or buy consumers sensitives because less oil prices is good for consumers, for companies and for margin expansion? Prateek Agrawal: Yes, some bit of benefit will go into manufacturing and that is something we like; to airlines maybe. So, that is import parity pricing on cost. If the traffic increases, there would be higher margins, but not for banks, as if more rate cuts happen than anticipated, then the pressure on NIMs will start to manifest itself. NBFCs, yes, for the same reason that their input is money from banks and the cost of that would reduce. Live Events You Might Also Like: Markets likely to trend and hit new highs in H2; 3 themes to deliver multi-year returns: Nitin Raheja This market right now does not have too many concerns barring that centred around valuation. Tariffs, macro, geopolitics are getting sorted out. Globally, wars are getting sorted out. Are we nearing the peak of good news because markets climb the wall of worry and come down on a ray of hope? Prateek Agrawal: We have seen investors still worrying a hell of a lot because a lot of events in the recent past have caused turmoil. The flows into mutual funds were not very strong in the last two months. This month could be an encore. So, it is not all positive. But one positive which is happening and which you missed is a good result season versus what was expected. A 3-4% earnings growth was expected, but we are getting much better earnings growth. So, there are things to fuel the rally forward even if we talk about the immediate term. Weaker dollars, DXY at sub-99 has happened after a long while, and that points to the dollar moving away from the US all over the world and if India sticks out as being slightly better, then we should get some share of that. So, foreigners would also be buying more than usual. Domestics will continue to buy. The IPOs are still some distance away. The big momentum would be some distance away. It is good for the secondary market. A one, one-and-a-half-month period is a sweet spot for the secondary market. The earning season is behind us; the index has crawled back to the 25K mark. There is good buoyancy even in the broader market. Where do you still see value and growth visibility coupled with that on the table? Prateek Agrawal: Simple, there is no value. If you are hunting for value, this is not the market for you. Hunt for growth. There are two styles of making money, the value style and the growth style. The best of value is behind us. Being growth investors, lower interest rates with continued good growth outlook is a very good combo for growth investing . We think our time has come. You Might Also Like: 4 new IPOs coming; should you go for them? Here's how Abhishek Gaoshinde rates them When you say there is no value in the market, then why should one be invested in mutual funds? Prateek Agrawal: Kyoki growth toh hai (But there is growth). This is a period in the life of a country when several new spaces which offer strong growth not for one year but multiple years are all coming up at once. In the '90s, you got software. New space delivered huge growth for several years. In the same light, if we see the last five years and it is happening as we speak, many newer spaces are emerging in the market which offer the same combo. We have been saying this now like a parrot every time you have me that it is not a period of the index, it is a period of alpha. It is a period of these newer spaces where growth and sustenance of growth is of another order versus the index. You have been bullish on the EMS space as well. How do you see the value, valuations, as well as the growth within this particular segment? From here on. how do you see the stocks moving as well if at all? Prateek Agrawal: What we run is portfolios not single stock, single sectors. All the growth spaces find representation in our portfolio. Yes, EMS is there. Yes, renewable energy is there. Yes, defence is there. Yes, NBFCs are there. Capital market plays are there. Luxury is there and more. New tech is there. As for EVs, till now we have not found a name, and so it is not there but that is where growth is. Now, we have to find spaces where growth corrected for valuations make sense, which is what managers do. If you look at our fund house, these are spaces you will find in practically all of our funds. That is the method in the madness of what we do. We are out and out growth investors. We think our portfolios are some of the highest growth in earnings portfolios in the country.
Time of India
04-05-2025
- Business
- Time of India
Time to start building wealth? Vaibhav Agrawal says correction in small and midcaps offers attractive entry points for investors
Tired of too many ads? Remove Ads Q) Thanks for taking the time out. Markets have been volatile lately, thanks to Trump's tariff talk and geopolitical concerns between India and Pakistan. How are you assessing the situation? Tired of too many ads? Remove Ads Q) With India possibly entering a low-interest-rate cycle, what should be the asset allocation strategy for investors in the 30–40 age group? Popular in Markets Q) What's your view on the Q4 results so far and expectations for the upcoming quarters? Q) Gold has crossed Rs 1 lakh in the physical market. Is it now more than a safe haven—perhaps even a wealth creator? Q) What's your outlook on small- and mid-caps for FY26? Q) After the correction, where are you seeing value in the market? Q) How are FIIs viewing India? While there's been some buying recently, FIIs pulled out over Rs 13,000 crore from the cash segment this month. Tired of too many ads? Remove Ads Q) Have you made any portfolio adjustments to handle volatility from global events like tariffs or geopolitical risks? In this edition of ETMarkets Smart Talk, we speak with Vaibhav Agrawal, CIO – Alternates (Public Equity) at Motilal Oswal Asset Management Company (MOAMC), who shares his insights on the current market landscape amid rising volatility and global recent swings triggered by geopolitical tensions and macroeconomic headwinds, Agrawal believes this is a great opportunity for long-term investors to start building wealth. The sharp correction in small- and mid-cap stocks has opened up attractive entry points for investors with a strong risk appetite and long-term also discusses asset allocation strategies for younger investors, sector outlooks, and how MOAMC is positioning its portfolio to capitalize on India's domestic growth excerpts:While macroeconomic and geopolitical developments are causing volatility, several indicators are working in India's favor. Inflation is under control, oil prices are at favorable levels, rate cuts are projected ahead, and the RBI is infusing liquidity. We're also seeing a revival in capex and fiscal support for fact, corporate earnings should improve in FY26. Despite global concerns, India's internal economic fundamentals remain solid. We remain constructive over a 6–12 month current environment is favorable for equities. Sectors like capital goods, discretionary consumption, and technology are poised to benefit from economic recovery, infrastructure growth, and rising investors can afford higher equity exposure. In a low-rate environment, equities are attractive due to their superior long-term return potential compared to fixed-income still early in the earnings season, but we believe asset quality concerns have peaked for banks and NBFCs. Credit growth and operating efficiency should drive better results going companies, however, may face near-term headwinds due to slower global IT budgets and demand softness across geographies amid ongoing deserves some allocation in a portfolio. But comparisons with equities are point-to-point and must be in a challenging phase for equities and a favorable one for gold, which skews perception. While gold is benefiting from global uncertainty and low rates, equities still offer higher long-term returns. Investors should balance gold's defensive traits with equities' growth recent sharp correction has made valuations in quality mid- and small-cap stocks attractive. These stocks often outperform during recoveries as they are more sensitive to domestic demand and infrastructure long-term investors, this is a great time to accumulate quality names with strong fundamentals and earnings find compelling value in sectors like capital goods, electronics manufacturing, and BFSI. Government policies, infrastructure push, and demand for electronics are tailwinds for these goods will benefit from infrastructure momentum, and BFSI from credit growth and financial inclusion remains a bright spot both in terms of growth and geopolitical positioning. But FII behavior is influenced by multiple global factors—interest rates, currency movements, macro trends—which makes it hard to India's strong fundamentals, FII flows are often governed by relative attractiveness of other markets and global liquidity we've tilted our portfolio towards domestic-facing businesses with more predictable earnings and better focusing on companies relatively insulated from global volatility, we aim to minimize external risks while still capturing growth from India's robust macro story. This approach allows us to stay defensive without compromising on return potential.
Economic Times
04-05-2025
- Business
- Economic Times
Time to start building wealth? Vaibhav Agrawal says correction in small and midcaps offers attractive entry points for investors
Volatility offers opportunity: Motilal Oswal AMC's Vaibhav Agrawal on market outlook, midcap picks, and gold. In this edition of ETMarkets Smart Talk, we speak with Vaibhav Agrawal, CIO – Alternates (Public Equity) at Motilal Oswal Asset Management Company (MOAMC), who shares his insights on the current market landscape amid rising volatility and global recent swings triggered by geopolitical tensions and macroeconomic headwinds, Agrawal believes this is a great opportunity for long-term investors to start building wealth. The sharp correction in small- and mid-cap stocks has opened up attractive entry points for investors with a strong risk appetite and long-term also discusses asset allocation strategies for younger investors, sector outlooks, and how MOAMC is positioning its portfolio to capitalize on India's domestic growth excerpts: A) While macroeconomic and geopolitical developments are causing volatility, several indicators are working in India's favor. Inflation is under control, oil prices are at favorable levels, rate cuts are projected ahead, and the RBI is infusing liquidity. We're also seeing a revival in capex and fiscal support for consumption. In fact, corporate earnings should improve in FY26. Despite global concerns, India's internal economic fundamentals remain solid. We remain constructive over a 6–12 month horizon. A) The current environment is favorable for equities. Sectors like capital goods, discretionary consumption, and technology are poised to benefit from economic recovery, infrastructure growth, and rising demand. Young investors can afford higher equity exposure. In a low-rate environment, equities are attractive due to their superior long-term return potential compared to fixed-income assets.A) It's still early in the earnings season, but we believe asset quality concerns have peaked for banks and NBFCs. Credit growth and operating efficiency should drive better results going companies, however, may face near-term headwinds due to slower global IT budgets and demand softness across geographies amid ongoing uncertainty. A) Gold deserves some allocation in a portfolio. But comparisons with equities are point-to-point and must be in a challenging phase for equities and a favorable one for gold, which skews perception. While gold is benefiting from global uncertainty and low rates, equities still offer higher long-term returns. Investors should balance gold's defensive traits with equities' growth potential. A) The recent sharp correction has made valuations in quality mid- and small-cap stocks attractive. These stocks often outperform during recoveries as they are more sensitive to domestic demand and infrastructure activity. For long-term investors, this is a great time to accumulate quality names with strong fundamentals and earnings visibility. A) We find compelling value in sectors like capital goods, electronics manufacturing, and BFSI. Government policies, infrastructure push, and demand for electronics are tailwinds for these industries. Capital goods will benefit from infrastructure momentum, and BFSI from credit growth and financial inclusion trends. A) India remains a bright spot both in terms of growth and geopolitical positioning. But FII behavior is influenced by multiple global factors—interest rates, currency movements, macro trends—which makes it hard to predict. Despite India's strong fundamentals, FII flows are often governed by relative attractiveness of other markets and global liquidity conditions. A) Yes, we've tilted our portfolio towards domestic-facing businesses with more predictable earnings and better visibility. By focusing on companies relatively insulated from global volatility, we aim to minimize external risks while still capturing growth from India's robust macro story. This approach allows us to stay defensive without compromising on return potential. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
30-04-2025
- Business
- Time of India
Multi asset category sees strongest inflows in March 2025: Motilal Oswal AMC Study
Multi Asset Mutual Funds have continued to attract inflows in the hybrid category, securing approximately 74% of the net inflows during March 2025, according to Motilal Oswal Asset Management Company (MOAMC) latest study 'Where the Money Flows'. #Pahalgam Terrorist Attack PM Modi-led 'Super Cabinet' reviews J&K security arrangements Pakistan's General Asim Munir is itching for a fight. Are his soldiers willing? India planning to launch military strike against Pakistan within 24 to 36 hours, claims Pak minister Balanced advantage and aggressive hybrid funds recorded healthy inflows of around Rs 2,000 crore and Rs 1,000 crore, respectively. Conservative Hybrid was the only category with a notable net outflow of Rs 500 crore, implying a reduced preference for debt-heavy hybrid allocations during the quarter. Also Read | MF Tracker: HDFC Small Cap Fund turns Rs 10,000 SIP to Rs 1.14 crore in 17 years Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thousands Are Saving Money Using This Wall Plug elecTrick - Save upto 80% on Power Bill Click Here Undo The report takes a closer look at how investors are allocating funds across different segments of the mutual fund (MF) industry for the quarter ending March 2025. The mutual fund industry recorded estimated net inflows of Rs 25,000 crore. While passive funds attracted Rs 33,000 crore in net inflows, active funds saw a net outflow of Rs 8,000 crore—largely due to redemptions in debtoriented categories rather than equity. Debt funds witnessed Rs 1,10,000 crore in outflows, reversing from Rs 38,000 crore of inflows in the previous quarter. This was mainly driven by advance tax payments made by corporates, which led to major redemptions from Constant Maturity Funds (Rs 1,03,000 crore). The industry also witnessed 73 new fund launches, gathering Rs 13,067 crore through NFOs, a meaningful portion of the net inflows during the quarter. Live Events 'The mutual fund industry's Assets Under Management (AUM) rose to Rs 65.74 lakh crore in March 2025, a robust 23.11% increase year-on-year from Rs 53.40 lakh crore in March 2024. The steady rise in Mutual Funds AUM reflects a gradual shift in household savings towards financial assets, supported by growing comfort with market-linked investments and a broader awareness of mutual fund products. Continued flows through Systematic Investment plans (SIPs) and a more accessible investment ecosystem have also contributed to the industry's sustained growth,' said Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company Ltd (MOAMC) said. 'In FY25, passive funds saw a 21% year-on-year increase in AUM, rising 21% year-on-year to Rs 11.13 lakh crore. This growth was driven by the continued adoption of rule-based investing and the preference for low-cost structures. While equity-based passive products led the way, debt ETFs also saw modest growth with AUM at Rs 97,000 crores, indicating early signs of broader diversification within passive strategies,' said Pratik Oswal, Chief of Business Passive Funds, Motilal Oswal Asset Management Company Ltd (MOAMC). During the quarter, equity funds remained the key contributor, with net inflows of Rs 1,17,000 crore, reflecting steady interest in long-term growth assets. Active Equity led the way with net inflows of about Rs 92,000 crore, followed by Rs 25,000 crore in passive equity. Passive equities now account for 21.5% of total net flows within the equity category. Overall, at 64% of market share, Broad-Based funds took away the major share of equity net inflows. The net flows share of Broad-Based funds in passive equities increased from 66% to 84% (QoQ), while in active equities, it increased from 70% to 72%(QoQ). Among Active Equity, net inflows in Thematic funds continue to decline, settling at around Rs 9,000 Cr. Within Passive Equity, Broad-Based funds saw higher inflows, with Factor funds holding a 15% share and Thematic funds at 2.7%. Also Read | Akshaya Tritiya: How gold ETFs performed in last 10 calendar years Among the active broad-based segment, flexi cap and small cap funds saw net inflows of Rs 16,500 crore and Rs 12,000 crore respectively, followed by midcap funds at Rs 11,700 crore. For Passives, investors continued to prefer large cap for their allocations, with the category receiving 90% of net inflows. However, there was a marginal decline in the share of flows, with some shift towards the mid-cap and small-cap segments. Overall, net inflows in thematic mutual funds declined from around Rs 14,000 crore to Rs 8,400 crore (QoQ). Consumption and Infrastructure themes together garnered inflows of around Rs 2,200 Cr in the thematic space, while the Manufacturing theme experienced a marginal outflow. Defence theme saw investor interest, with net inflows of around Rs 1,000 crore. Passively managed Thematic funds also witnessed the emergence of new themes like Capital Markets and EV Debt funds saw Rs 1,10,000 crore in net outflows, a reversal from Rs 38,000 crore inflow last quarter. Constant Maturity funds dominated the outflows, making up around Rs 1,03,00 crore overall. This was followed by categories like Floating Rate and Gilt, recording outflows of around Rs 2,600 crore and Rs 2,500 crore, respectively. Target Maturity funds, on the other hand, recorded net outflows of around Rs 2,800 crore Active Liquid funds witnessed net outflows of around Rs 52,000 crore, primarily driven by corporate advance tax disbursals in March. Passive Liquid Funds inflows stood at Rs 1,400 crore, reflecting steady institutional deployment. This was followed by Overnight & Ultra Short Duration categories, recording outflows of Rs 30,800 crore and Rs 12,400 crore respectively. Generally, investors use debt funds with maturity up to 1 year to park excess cash in the short term, leading to high volatility in inward & outward flows The international category experienced minimal flows across segments, largely due to restrictions on new investments in such schemes imposed by the RBI threshold. Broad-based funds recorded marginal net inflows of Rs 100 crore. Passively managed thematic international Funds saw net outflows of Rs 800 crore.
