Mirae Asset Global Investments will stick to “fairly valued” large-cap stocks this year, a strategy it stayed with over the last one year, Chief Executive Officer Swarup Mohanty told BloombergQuint in an interview. The fund house had shifted its portfolio approach of focusing on mid-cap stocks at the end of 2016.
“Investors investing for a period of below five years should stick with large caps. Above five years the mid-caps stocks could outperform their larger peers,” Mohanty said. It’s a good time to allocate money in the pharmaceutical sector, he added.
He will watch any announcements in upcoming Budget in the financial services sector, which is "broadening with newer avenues to invest”, Mohanty said. Overall, he does not expect Finance Minister Arun Jaitley to make any significant changes.
Instead, foreign investors will keenly watching how the structural reforms such as Goods and Services Tax are shaping up. “Once these (reforms) start playing out, and you couple it with the favorable demographic factor, you just cannot stop the India growth story.”