Deven Sangoi chat
Interact with the well known Equity Fund Manager Deven Sangoi. A BE electonics MBA, he has been working with Birla Sunlife Asset Management for the last three years. He has previously worked with Alchemy Stock and Shares Ltd. Read a transcript of a chat with him on October 8.india Updated: Nov 07, 2003 20:35 IST
shovana: How should one evaluate which mutual fund should one invest in?
Deven Sangoi: Based on past-performance of at least two,two and half years, credibility of fund manager, and the fund house.
ganesh: Do you see any long-term future for GILT-based mutual funds?
Deven Sangoi: If you look at a short-term future, then the future is limited. Long-term, all these products are viable products. They should continue to do well.
rohit: As a Fund Manager, what is your investment strategy for equity investments?
Deven Sangoi: You buy high dividend yield stocks, which are out of favour, available at cheap valuation.
chirag: The market is wavering around 4500, bull is crazy now. Till what time this will go on... will it cross 5000... and when?
Deven Sangoi: It's very difficult to predict an index. We believe that there is an economic recovery taking place and we continue to be bullish on economy and economy-related stocks.
harsh: What impact, do you think, the Supreme Court ruling on Mauritius FIIs will affect the market?
Deven Sangoi: In a short-term these factors may impact. Medium to long-term, we don't see a significant impact of this decision.
kajal: What future do you see of disinvestments of Oil PSUs? Are you in support of the government's plan of splitting the IOC?
Deven_Sangoi: It's a political decision. It's very difficult to predict when the divestment will happen. We are very certain that over the nexttwo years, government will take very hard decisions to divest leading PSUs (post-elections). IOC continues to remain the largest oil marketing company and continues to be under-valued.
uppal: What are the benefits of going in with an equity mutual fund than investing directly in the market?
Deven_Sangoi: The equity mutual fund has a professional manager who is handling your investments, who is aware of risks associated with each investment. As compared to direct investment, at times you are not aware of the changes in business which impact companies. Which may result in any kind of adverse movement in stock price.
warren: What will happen if the government removes tax incentives available to the mutual fund industry?
Deven_Sangoi: It may impact short-term sentiments of investments in mutual funds. In US all funds are paying short-term and long-term capital gains tax. Despite that, the industry continues to attract good amount of money.
chiragalpa: Which are the segments (software, pharma) where it will be right to invest at this point of time?
Deven_Sangoi: chirag, We are more bullish on pharma.
vignesh: Which fund ratings should an individual investor refer to before making an investment decision in mutual funds?
satish: What suggestions will you like to give to thegovernment in order to improve the state of the financial markets?
Deven_Sangoi: Continue exemption of capital gains tax, which the government has been provided in last year's budget for one year. That will be a good booster for a lot of long-term investors to come in the market.
rajiv: What safeguards do small investors in mutual funds have?
Deven_Sangoi: You have a professional manager managing money. With SEBI and disclosures improving, you can monitor your portfolio at much shorter interval.
amitkapoor1978: Which fund of Birlado yourecommend for short term gain?Deven_Sangoi: Birla MidCap and Birla Advantage Fund.
gaurav: What is the long-term outlook of banking stocks? In which ones do you see a potential?
Deven_Sangoi: We continue to remain bullish on banking sector. We expect an uptake in credit growth, which should benefit banking stocks. Banking stocks continue to look cheap. We expect uptake in credit off-take should benefit them. We think SBI remains our top pick in the banking sector.
tina: How does the stock market behave around elections?
Deven_Sangoi: Volatility usually increases. If a strong party comes to power then the stock market tends to take it positively.
faisal: How, do you suggest, should one distribute their investment portfolio into?
Deven_Sangoi: Distribute investment portfolio - Large cap - 25-30%, Mid Cap - 25%-30%, and value stocks should be 30-35%.
amitkapoor1978: Do you recommend investing in Vijaya bank IPO?
hanish: The US markets took a very long-time to recover after September 11. The Indian stock market, on the other hand, were normal afterthree days of Mumbai blasts. What makes the Indian market so dynamic compared to the US market?
Deven_Sangoi: It was the first large-scale terrorist attack in the US, which resulted in huge sentimental setback. It impacted all the Americans. In India bomb blasts and terrorists attacks are a routine feature. Even in the large scale attacks in 1992, the markets recovered sharply. It's the case even today. (in 1993)
rohan: Why is HDFC bank doing so well?
Deven_Sangoi: It is one of the most admired private sector banks, with the best asset quality and lowest NPA.
amitkapoor1978: How shouldI distribute my 100 rupees in debt, equity and balance fund?
Deven_Sangoi: You should be 55-60% in equity, close to around 30% in balance, and rest in debt.
kshitij: How long will the current bull run continue? Is the current run based upon financial performance of listed companies, or just on the basis of investment?
Deven_Sangoi: It is based in broad financial performance of Indian corporates. This is also been aided by sharp economic recovery. We think the bull run will continue for at least the next two years.
ramesh: Do you think a stock market scam can happen now?
Deven_Sangoi: If somebody can find a new loophole in the system, it can happen.But the new surveillance system of SEBI and improvement in monitoring of stockmarkets, probability of a new scam happening is pretty low.
ronita: Around Diwali how will the markets perform?
Deven_Sangoi: I think the second quarter results provide further direction to the current rally. We expect a good corporate performance in the second quarter.
jaya: How should one decide whether to enter market directly or no?
Deven_Sangoi: If you are knowledgeable enough to identify stocks and understand risks associated with it, you should enter the market directly, else the best way to enter the market is through mutual fund route.
rohit: Why are exchanges like DSE, CSE dying away?
Deven_Sangoi: Because National Stock Exchange is becoming powerful and major parts of the volumes are happening on that exchange. It is also a leader in upcoming areas like derivatives.
It was a great pleasure having you here Mr Sangoi. Will you like to leave a message for those who joined us today?
Deven_Sangoi: We feel that in the current interest-rate scenario along with ongoing economic recovery, equity investment are looking far more attractive for long-term investing.