Taher has over 30 years of experience in the Indian equity markets. In his role as Chief Investment Officer, Taher is responsible for the equity and fixed income investment function at the firm. He has been with Invesco Asset Management, India for over 7 years. In his previous role with Motilal Oswal Asset Management as Head of Equities, he was responsible for leading the equity investment team. In the past, he has also worked with companies like Kotak Mahindra Investment Advisors, ICICI Prudential Asset Management, Alliance Capital Asset Management, etc. Taher holds a Master’s in management studies (MMS), with specialization in finance from S.P. Jain Institute of Management and a B.E. degree in Electronics from the University of Mumbai.
Answer :
We believe the correction in the broad market and particularly in the SMID space since the start of the year has by and large run its course. Bulk of the damage is behind us. Domestic slowdown and Global uncertainty have been the key causes of the market decline. We think many of the measures taken by RBI and the Govt in the past 3 months, the start of the rate cut cycle and the support to consumption through the Budget will have their effects in the coming months to Improve growth trends. Globally, we reckon the tariff measures by the US will be in place over the next 2-3 months. We also expect the US economy to slow this year and thereby foreign investor flows to start moving from developed to emerging markets. Meanwhile, India's valuations, especially in the smallcap segment have corrected 20pc during this fall making the segment quite attractive once again for investors with a 2-3 year horizon.
Answer : At a stock level, investors should move up the quality curve but at the same time ensure those companies are able to grow ahead of the system rate of growth (nominal GDP). Companies with credible competitive advantages and strong execution in the recent past should be preferred.
Answer : Over time various factors will confront markets and investors in their journey. It is important to keep a longer-term view and return expectations modest. One will not find answers to all issues at the same time. It is important to be able to judge what market has already priced in. Due to prevailing uncertainties, India's valuations have lost much of their premium to world markets which provides an attractive entry point for smart investors who look to compound earnings over the long term in our view. Uncertainty provides opportunity.
Answer : For investors with a medium risk appetite, I would recommend a combination of a flexicap and small cap fund (75%) at this stage of the market cycle. I would also look to do the remaining 25pc allocation to at best 1-2 thematic funds and a multi asset fund.
Answer : We think India's earnings downgrade cycle is largely done and with the measures undertaken by the central bank and the government, we expect the earnings cycle to strengthen in the coming quarters and alongside a steady back ended recovery in the markets starting second half of calendar 2025.