Recently I had a chance to interview Jinesh Gopani who heads the equity division at Axis Mutual Fund.
While I have a natural bias towards value investing and I am a little uncomfortable with the high valuations that high quality stocks command at the current juncture, ‘Quality’ is an investment style which has been proven to work over long periods of time across across different countries.
Axis Mutual Fund has been very vocal about their ‘Quality’ orientation, and the good part is they have stuck to their style through good and bad times. Despite going through some rough years in 2016, 2017 they have managed to stick to their style of concentrated low churn high growth, high quality companies. All their portfolios are reasonably simple in terms of construct and a simple glance at their portfolios can give you a sense of whether they stick to style. Majority of the companies will fit into the construct of – High ROCE/ROE + Low Debt + High PAT growth + Market Leaders + Good Management + High Corporate Governance.
Overall from a portfolio construction point of view, in equities there are 5 different styles or buckets across which you can diversify your holdings.
- Mid and Small Cap
- Global Equities
For the Quality/Growth Bucket, Jinesh Gopani has built a solid long term track record (via his ELSS offering Axis Long Term Equity Fund and Axis Focused 25 Fund) and is a very interesting fund manager to watch out for.
Please find below the interview, where he explains his investment process, how he picks stocks, how he views the current valuations, recent cash calls etc
Hope you found the interview useful and I plan to do a lot more of such interviews in the future. Feedback and comments are welcome.
Happy Investing as always folks!
If you have any thoughts or would want to connect you can mail me at email@example.com.
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Disclaimer: All blog posts are my personal views and do not reflect the views of my organization. I do not provide any investment advisory service via this blog. No content on this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.