Four Sectors Axis Mutual Fund Is Most Bullish On
It’s best to keep the gold standard names in the portfolio and stay patient, Jignesh Gopani said.
Amid heightened uncertainty, Axis Mutual Fund narrowed down on a list of four sectors for investors to earn best returns—consumer staples, technology, pharmaceuticals and financials. In that order of preference.
“We need to start investing money and stay invested in the same stories even if they are down 15-20 percent for now as long as you think they are a winner in their own sectors in the next two-three years,” Jignesh Gopani, head of equities at the asset management company, told BloombergQuint in a phone conversation. It’s best to keep the gold standard names in the portfolio and stay patient, he said.
The list however, is subject to changes in the economy, he said, adding that it must be reviewed in a few months to see if cyclical sectors such as auto are worth investing in.
As the government and select sectors try to reopen India’s economy, Gopani expects 40-50 percent of India to begin operations by June-July, if the health crisis does not get worse. If all goes well, 70 percent of economic activity should start by September, he added.
India has reported more than 56,000 confirmed cases of coronavirus so far, with more than 23,000 of these reported in May alone. Nearly 1,900 people have died.
Gopani said it’s difficult to asses the true situation and investment outcomes will heavily depend on the virus and the government’s stimulus for the economy.
Watch the full conversation here: