Indian MFs do not feel much heat from US crisis While the collapse of Lehman Brothers and Merrill Lynch in the US has aggravated the global financial markets situation, Indian fund managers are not much perturbed.
SBI Mutual, Sahara Mutual and Kotak AMC continue to pursue their current strategies. "There will not be any major shift in our investment strategy. A change in strategy cannot be enforced overnight over a single event, especially when we have no stakes in those companies," said Lakshmi Iyer, vice president & head – product, Kotak AMC. Said Achal Gupta, managing director of SBIMF, "the recent crisis in US has been factored in, just as one of the many factors in framing our investment strategy." However, there are a few fund houses that are implementing strategy changes. Mirae Asset Global Investment Management (India) is going through a shift in sector allocations. Anticipating further liquidity crunch in the market, the fund house has started taking exposure in domestic consumption oriented sectors like FMCG, pharmaceuticals, oil & gas. It is pulling out money from sectors like real estate, auto, banking and construction. The fund is not taking any cash call beyond 8-10 per cent. "We expect further Fed rate cut following the Lehman and Merrill crisis. Hence, we are cautious on liquidity. Domestic demand in consumption related sectors will remain the same, maintaining the liquidity," said Gopal Agrawal, head – equity, Mirae Asset. Sundaram BNP Paribas equity fund manger, Said J Venkatesan, said, "the negative sentiment in the market has created investment opportunities in large cap stocks. Earlier, we were taking 25 per cent cash position due to volatile markets. Now, we have just started deploying the same cash in some large cap stocks with corrected price." Domestic fund houses purchased equities worth Rs 963.80 crore and sold Rs 721.80 crore on Tuesday, Sep 16, as against purchases of Rs 573.40 crore and sales of Rs 336.50 crore last Friday, Sep 12. On Monday, fund mangers bought equities to the tune of Rs 629.20 crore while they sold worth Rs 498.30 crore. According to Venkatesan, the worst from the global financial crisis seems to be over. -- Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
