Swati Kulkarni, executive VP & fund manager at UTI Mutual Fund, invests in companies which have a strong competitive franchise.
“The noise levels or the news flows around the macro situation typically does not affect that thought process directly. Indirectly we do have to take into account the changing macros and have portfolio strategies accordingly. So I would say that the conservatism is coming out of selecting stocks or companies which are having some competitive advantage in the areas in which they operate and also I follow growth at reasonable price. So it is a valuation-aware strategy as far as my portfolios are concerned”, Kulkarni told CNBC-TV18 on Friday.
Kulkarni further added that the current account deficit has worsened. She said, “The current account deficit has worsened and is likely to worsen further. So the rupee pressure is likely to be there.”
Kulkarni is overweight on the IT sector. She said, “I am overweight on IT not just because it tends to be a beneficiary of a depreciating rupee, but if you look at the valuations, valuations are still reasonable compared to the market valuations.”