Everyone is waiting for this consumption fund. Now that the consumption fund is finally from Edelweiss, I think the atmosphere is over. Do you agree with me?
Radhika GUPTA: correct. And when we start the fund, we don’t think the CIO will say that consumption will be a dark word of the year. After Saturday announcement, we were all in the office. He came from his cabin, and I think it is not a dark word. Later this year.
I thought you planned it after the budget and you started it. What timing?
Radhika GUPTA: We planned it before the budget. The day before the budget was held. The NFO opened the day before the budget and the budget.
You need to call when you need to know what’s going on with the next budget.
Radhika GUPTA: correct. By the way, we got this last year. When we fell in dump in March, we used to technology and were in 2024 as technology. So you have to call us.
Why should I invest in this because I believe that stocks are expensive? This great Indian romance may be. However, if you buy a company with 50, 60, 70 pE drainage, you will not be able to make money if you have a stock.
Radhika GUPTA: So I will give you a fast 2 liner. One believes that if the story of India progresses, consumption will be a large part of the story. The income income per capita is from 2,000 to 5,000, and we are talking about Viksit Bharat. 15,000 ~ 20,000, 60%will come from spending. You can see the trajectory of the main economy. You can see how the United States was formed in the 60’s, 80’s and 2020. Consumption followed the pattern. Therefore, it is a wide range of sectors and India is a consumption -led economy.
Now the point and consumption stocks are expensive. Looking at India as a gun, India’s PE is multiple 10 years because the stock market is higher than the 10 -year average. Therefore, India is evaluated above.
But in the basket, the stocks decreased 20%, 30%, and 40%. And in an environment that is disappointed in the same environment as 2025, most of the pain of consumption is at the price.
We don’t say we’ll go around this quarter. In fact, we say we can have a bad import of 1 ~ 2/4, but you are getting closer to the bottom of the import cycle of consumption.
Third, what is not planned at the beginning of the fund is a catalyst in the form of everything that has entered the budget.
Consumption can start with FMCG and go to a place as high as luxury cars. What is the basic topic of this fund?
Radhika GUPTA: There is a myth of a very boring FMCG company and a staple. And we want to claim that consumption is actually very dynamic. If you look at the US consumption basket, the biggest item is actually media and three items are biotechnology. So, as people’s income changes, we can consume change that KumbH tickets will be 80,000 at night, and people can imagine that hotel rooms will go to see cold play? So I think that’s a core consumption. We divide it in this way.
The core consumption is traditional staple. It will be part of the portfolio. But there are two other categories. Category 2 is what you call emerging consumption.
For example, I think that food delivery comes to mind, beauty and personal care, and travel will come from the category of new consumption, experiences, and more listed companies.
So over the past few years, you have many listed companies, platforms, and D2C brands. And the third is that there are periodic things in consumption. Therefore, consumption is not static. For example, there is an economic branch where the demand for two -wheel cars works very well. You have a point in the economy where hotel demand is actually good. Therefore, the core is emerging and periodic, and we will try and mix all three.
Last year, you had this big topic about manufacturing, many of which were actually done and invested in the subject. Most of the hopes are actually CAPEX themes. And when they entered this, it was actually a high risk. There was a potential for high growth. But now, if someone sees a consumption space and looks at the consumption space in consideration of how the budget is going, what should they be very careful?
Radhika GUPTA: So, the way I think is this, and aside from this consumption, we manage large -scale regular funds that we can choose between the sectors. I have to try and try when you invest in any kind of theme. Do it at the bottom of the cycle.
Thus, in general, the theme has a very good performance in the past and was in the case of manufacturing and defense last year. The theme must be performed at the floor of the cycle.
Now in our own funds, we were honestly manufacturing overweight last year. Last year, we reduced weight in manufacturing and capital product -oriented sectors before the budget and added three sectors, technology, banks, lending institutions and consumption.
Therefore, if you look at the theme, you should see what is at the bottom of the cycle. If there is a drop in imports, you should look at the safety limit.
So we just got the outlook for the consumption fund you just started. But other than that, please help you to understand a sip. Because we are with you, I wanted to know that what we are looking at is that volatility is increasing because the market is a little late. Where can I see the SIP trend? Although it was growing in one way, there was a slight slowdown in terms of gradual growth. In the past, haven’t changed in the past or the allocation in terms of allocation?
Radhika GUPTA: It’s too early to say. The assistant began to change in October from the market point of view and story. The monthly capital flow was the same as the industry. In fact, I think the industry has more than 40,000 stocks.
Certainly, our numbers were the same in January as in October. Look, there are two parts. SIP organs continue to be structural. I say that when India comes at the end of 10 years, India will have a stupid Mossbook. Can you see 5% to 10% bubbles in this number now? yes. Are you still seeing that bubble or that bubble comes to mind? It’s too early to say. One interesting thing is that the one -year profit of SIP is now more flat. Investors are mature.
They are much longer. But as I said, it’s too early to say. One thing you see is probably when a large NFO is happening, because they are getting a little smaller, that’s the first sign of the influence you see.
There is a full story in the market. SmallCap is a Humpty Dumpty, and LargeCap is slim and trim and thin. Move from SmallCap and go to LargeCap. Do you see this coming at the portfolio level and AMC level? The net number is impressive, but is it coming for a small cap, a small cap fund, a mid -cap, and a mid -cap fund?
Radhika GUPTA: No, I don’t like the story. I don’t understand the story and I think there is a reason why some people should spread the story. But there are a few things to say here. One is that even this income season is disappointed with imports, and it is actually large, and small caps, mid -cap profit growth and its index are trading at the top speed.
Midcap revenue growth is actually better. Therefore, these small caps and midcaps should be traded with a discount on large caps. I am not sure if I buy it.
Another thing I always say is that India remembers a very unique way of classifying mid and small caps. SmallCaps are currently 11,000 croar companies, and MIDCAPS is a 30,000-40,000 croan company because it currently has a rank-based definition.
And I always say that investors do not jump with a large hat in a small cap hat, and if they want to hold 250 companies if they want a wide range of expressions of the Indian economy, you will not be gained from 50 to 100 companies because they are not.
I think I didn’t see the cut of small and medium caps. We operate large mid -cap funds and large small cap funds. In January, I saw the numbers that entered the MIDCAP accelerated. So I don’t even think we have seen the cut yet.
If someone has been reviewing three years of review and suddenly feels, and is talking about generations, post -coby investors, 30%and 20%mutual funds, what should they do? PAPA NE BOLA EQUIN MEIN PAISA MAT DALO, HUMNE NAHI Suna.
Radhika GUPTA: By the way, Mujhe lagta hai gen z investor ghabrate nahi hai. For them, even a SmallCap mutual fund is not aggressive. But I met more and more Gen Z investors in the world of SME IPO and borrowing for F & O and doing crazy things. So I don’t think the mutual fund is very aggressive for them. But to learn from everyone who is a new investor. Correction is a feature of stock investment. It’s not a bug in capital.
So, this time, use this time to reflect what actual appetite is. Learn dangerous appetite in down markets because no one learns dangerous appetite in high level.
So do nothing. Do not panic after seeing red and use it to reflect this time. And I think the Z generation has many dangerous appetite.
We underestimate the dangerous appetite of this generation. Born after 2000, people in India were born in India in India, India, and are risk and risk.
What is the other topic that can be a topic after market sales that you think there is an additional alpha, as the fund manager says it is an alpha? I always like that word. Greek alpha, alpha can be created in someone’s portfolio.
Radhika GUPTA: Therefore, the wind is changing in finance. And but for the past few years, lending agencies, especially banks, have been weak, and many trends have gone to capital market -oriented companies, exchange, and brokers.
If the wind of market changes, banks, private sector banks, and loans will be weak. So we are adding to the fund. So now they are considered value play. In fact, the quality of the balance table continues to be very good and potential red cuts are on your way. Therefore, the lending agency is the next big thing.
