Mr Ankit Pande is a Fund Manager at Quant Mutual Fund and has a total experience of over 17 years. Mr Pande is a CFA from Charlottesville, USA and an MBA from CUHK Business School, Hong Kong.
In Quant, Mr Pande acts as the fund manager of multiple fund schemes, including the ELSS, Infrastructure, Large and Mid-Cap Fund, etc. Under his stewardship, Quant fund schemes have consistently delivered strong results.
Mr Pande has been working as a fund manager in Quant since November 2016. Before this, he was working as a research analyst with Quant Capital. He specialised in equity research and analytics of tech firms. He had a similar role in his two-year tenure in SBICAP Securities as a Research Associate. He started as a Technology Analyst in Infosys Finacle where he worked on wealth management and core banking solutions.
Here’s MoneyEdge in conversation with Mr Ankit Pande.
Q.1) How would you suggest we should change our investment strategy when the market turns bearish from bullish, assuming we have our short-term investment stuck in the market?
As the market turns bearish from a bullish phase, investors must adjust their investment approach to protect their portfolios. During downturns, the focus must be on stable and liquid sectors. Exposure to high-risk stocks that could experience significant swings should be reduced. Liquidity should be maintained so that you can seize opportunities as prices adjust. It’s important to remain calm and avoid making hasty decisions driven by market volatility. Assess your risk tolerance and adapt your strategy accordingly, ensuring your investments are diversified. Staying informed about market trends and continuously monitoring your portfolio will help you navigate market fluctuations more effectively.
Q.2) Which factor is the most vital in decisions on the Indian stock market?
Successful investing often involves a balanced approach that integrates –
Each factor contributes uniquely to decision-making based on market conditions and individual investment goals. At Quant, we use the VLRT (Valuation, Liquidity, Risk Appetite, and Time) framework with equal weight given to valuation, liquidity and risk appetite. Having an active and dynamic approach to portfolio construction is crucial.
Q.3) Can investment decisions be made purely based on the past movement of a stock?
No. While historical performance can provide valuable insights into a stock’s behaviour and trends, it is essential to consider a broader range of factors.
Fundamental analysis, which examines a company’s financial health, competitive position, and growth prospects, offers a deeper understanding of its potential for future profitability. Quantitative analysis can complement this.
However, by relying exclusively on past movements you may overlook changes in market conditions, economic factors, or company-specific developments that could impact future performance. A comprehensive approach that integrates both historical trends and forward-looking analysis is crucial for making well-informed investment decisions.
Q.4) Which sectors can we bank on according to you in the year 2024? Why?
At Quant, we use an active approach to portfolio construction, looking at data from a 3-6 months perspective. We have observed that sectors like consumption (especially food-related companies), real estate, and infrastructure (Including power, cement, metals, and auto ancillaries) are presenting good investment prospects. Our adaptive approach to portfolio management sees us reducing PSB exposure in favour of stronger private-sector banks.
Q.5) What are the recent major developments in the Indian market that will drive the market in the coming months?
Firstly, the transition to T+1 settlements and the debut of T+0 settlements for select stocks mark substantial steps towards enhancing market efficiency and reducing counterparty risks. These initiatives streamline the process of fund and securities settlement, providing quicker access to funds for investors and reducing operational costs for market participants.
Secondly, SEBI’s proactive stance on regulating 'Finfluencers'—influencers in the financial domain—signals a move towards ensuring transparency and investor protection. The proposed guidelines can restrict the association of unregistered finfluencers with brokerages, requiring them to obtain approval from SEBI or register as authorized persons. These initiatives can safeguard investors from misleading advice and promote accountability among financial influencers.
Q.6) We have witnessed a bullish trend in the Indian market for the last few years and as we all know this will be followed by a correction. What are the strategies to deal with this possibility?
In light of the recent bullish trend in the Indian market, it’s prudent to consider the possibility of an impending correction. While corrections are part of market cycles, our approach emphasizes proactive strategies to manage and potentially benefit from these fluctuations. Advocating for an active and dynamic investment approach includes diversifying into assets such as cash, gold and fixed income to mitigate risks during volatile periods. The strategy also involves timing the market strategically and maintaining liquidity to capitalize on buying opportunities during market dips, which has historically proven effective in the Indian market context.
For retail investors, continuing with systematic investment plans (SIPs) and entrusting market timing decisions to experienced fund managers can help navigate these fluctuations from a long-term perspective. This approach allows viewing corrections not as setbacks, but as opportunities for disciplined investing and strategic portfolio management.
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