The Mutual Fund Show: Funds To Invest For Potential Capex Cycle Gains

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Kshitiz, you are obviously not opting for the infra funds. What are the funds that you reckon would probably have exposure to some of these categories? I heard you mention the flexi fund, also the digital fund and digital assets theme. Will you do a mix and match of these, and therefore, what’s the extent of exposure that you would recommend?

Kshitiz Mahajan: I see three-four good fund options, which will give you what Vishal is also talking about—a play on the infra theme.

One is the Aditya Birla Sun Life Pure Value Fund, the second is the HDFC Focused 30 Fund, and the third is the DSP Tiger Fund. There’s also the Kotak Infrastructure and Economic Reform Fund, which is a combination of what we are talking about—infra story as well as the economic reform story, wherein we have banks play and certain companies play which will gain from many of these new ideas which are coming up.

On the capacity utilisation side, I see that they have decided to add up more capacity on the table for cement as well but still 100% capacity utilisation is not there. I not saying that it won’t do well; the infra part will do well.

I totally agree with what Vishal is saying. You can look at allocating some portion (of the portfolio). But for me, healthcare or technology is still a long-driven sectoral bet but when it comes to infra, I want to play a little safe for client portfolios. It’s always good to go to through a focused strategy because in these funds as well you get industry play, capital goods play, real estate play… every (kind of) play and various sector allocations are there.

When you talk about the digitalisation part, let’s say initially we used to have more and more power plants coming up. The money used to go in 2006-2007 cycle in those types of projects. Now it’s more (about the) clean or renewable energy part where money is going. So, the cycle is changing a bit when it comes to the new capex which is happening right now.

Similarly, when we talk about data science. In India, the cost of basic data, let’s say Kshitiz, his age, his name, his house number is $1; in the U.S., it is $7. Data becomes a big thing now. Because of that data, you can actually (understand) take out the investor behaviour. So that part will become very big. And there are new developments.

Importantly, the government is also eyeing the data because our country is working on that data, and thanks to the data part we are able to do a lot of things.

So I see that broadly, one can look at these funds wherein you have a good play on the sector’s which I mentioned, as well as you have a broader theme which are playing, and secular themes which are doing well.

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