Rajat Jain, Chief Investment Officer of Principal Mutual Fund, in an interview with CNBC-TV18 said he is positive on financials, and metals but underweight on staples.
On portfolio preferences, Jain, said, “In our portfolios, we have added discretionary, we have added some metals to that so we have seen metals do very well. Steel prices globally in India are doing very well, the spreads that these companies make are handsome at these point of time. So we have added discretionary, bit of cyclicals to our portfolio.”
“Financials is a big weight in our portfolio, which is actually cyclicals in some way as well. We have the pharma, we have the IT but incrementally, in the last couple of quarters, last 5-6 months we have added more of these to or portfolios.”
“The way we are playing NBFCs or financials as category are those players who actually have balance sheet strength but also the capital to grow. So if it is a bank typically we are playing a bank which has growth opportunity or the capital it can grow. In NBFCs we generally have those which are backed by corporate houses, they are much better in terms of strength of the balance sheets.”
“We are probably neutral or slightly underweight staples but we do have. You would find in most of our portfolio 3-4 staples names and we may have trimmed our positions a bit.”
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(Edited by : Bivekananda Biswas)
First Published: IST