It is a better option to be stock specific in both Pharma sector and IT sector, and it is not needed to be overweight on either of these two sectors, Shreyash Devalkar, Fund Manager – Equities, Axis MF, told The Economic Times.
IT sector has performed tremendously well in the past one or more years. Indeed, few companies in the sector are moving out of the orbit, said Devalkar. The companies in the sector are aligning themselves with the new market demand, he added.
Axis Mutual Fund would be adding those companies in the IT sector, and would not go for the broad-based IT, further said Devalkar.
There is pricing pressure and challenges, as well as increasing competition for the US-focused companies in the Pharma sector, said Devalkar.
“One needn’t be overweight on pharma as a sector. A few companies may be doing much better than others. It is better to be stock specific in both IT and pharma,” said the Equities Fund Manager of the Axis Mutual Fund.
Axis MF has been performing quite well. “Quality and growth philosophy,” has helped the fund house to produce this kind of outperformance, said Devalkar. He also added that the philosophy is also his style of investing.
The MF market has generously pleased “quality and growth strategy” in the past one year to one-and-a-half years after demonetisation.
The fund house follows the strategy and these stocks have performed well in the Calendar Year 2017, as well as in the Year-To-Date Calendar Year 2018, said Devalkar. The Equities Fund Manager attributes outperformance of the fund house to its Quality and growth philosophy.
Generally, about 70 percent to 80 percent of portfolio is in secular and long-term stable growth companies while the remaining percentage of the portfolio is from the challenging companies, said Devalkar. Usually, the challenging companies result in offering that extra higher alpha when compared to the secular, long-term stable growth companies, added Devalkar.
The balance of these two usually aids in making alpha in a fund, further added Devalkar of Axis MF, reported The Economic Times.
The post ‘Better To Be Stock Specific In IT And Pharma:’ Shreyash Devalkar, Axis MF appeared first on OWLT Market.
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