Unlock Alpha Secrets: Top Fund Managers Reveal Strategies for India's Toughest Markets!

Reviewed By

Satyam Jha | Whalesbook News Team

Detailed Coverage:

At the Moneycontrol Mutual Fund Summit 2025 in Bengaluru, presented by HDFC Mutual Fund and powered by Axis Mutual Fund, industry leaders Deepak Shenoy (Capitalmind), Anish Tawakley (Axis Mutual Fund), and Harsha Upadhyaya (Kotak Mahindra Asset Management Company) shared strategies for generating alpha in a difficult market. The consensus pointed towards a need for both confidence and caution, with a strong emphasis on risk management. Deepak Shenoy recommended focusing on large-cap companies known for consistent earnings and reliable business models. Anish Tawakley expressed optimism about early recovery signs in consumer durables and defense sectors, urging investors to look beyond short-term fluctuations for long-term prospects. Harsha Upadhyaya underscored the importance of disciplined valuation and maintaining a calm mindset during market volatility.

Regarding sector allocation, Shenoy favored cyclical sectors such as industrial capital goods, cement, automobiles, and financials, which tend to benefit from economic recovery. Tawakley highlighted growth areas like technology, electric vehicles, and high-end manufacturing. Upadhyaya suggested large-cap stocks as a balanced choice during uncertain times.

All three experts agreed that finding alpha today necessitates a thorough understanding of fundamentals, clear market trend analysis, and significant patience. They acknowledged India's evolving economic landscape as a source of great opportunities for long-term investors, particularly in domestic production, automotive, healthcare, and electronics.

The session concluded with a unified belief: true alpha is built upon strong, data-supported conviction, a disciplined strategy, and the patience to stick to the plan.

Impact: This news offers crucial guidance for Indian investors and fund managers, influencing their strategies for market navigation and identification of investment opportunities. The expert advice on risk, sector selection, and long-term perspective can shape investment decisions and market sentiment. Rating: 8/10

Difficult Terms Explained: * Alpha: In finance, alpha refers to an investment's excess return over a benchmark index, indicating the fund manager's skill in generating returns beyond what is expected from market risk. * Large-cap companies: These are companies with a large market capitalization, typically well-established and considered more stable investment options. * Cyclical sectors: Industries whose performance is closely tied to the economic cycle, performing well during expansions and poorly during recessions. * Sector allocation: The strategy of dividing an investment portfolio among different asset classes or industries to balance risk and reward. * Valuation: The process of determining the current worth of an asset or company by analyzing its financial health, earnings, and market conditions. * Conviction: A strong belief in an investment or strategy, backed by thorough research, leading to significant capital allocation.