Daily Voice: Mirae Asset's Bharti Sawant, a firm believer in India story, bets on financials, consumption

Bharti Sawant is the fund manager at Mirae Asset Investment Managers (India)

Happy Women’s Day

The equity market in India shows strength to face global headwinds despite raging volatility but its sustainability hinges on some factors such as robust growth in corporate earnings, comeback of private capex, revival of consumer spending and supportive regulatory environment.

Bharti Sawant, fund manager at Mirae Asset Investment Managers (India), put up her wish list for the equity market in the next financial year in an interview to Moneycontrol.

With the hope of the Narendra Modi regime retaining the power in the upcoming Lok Sabha elections running high, Sawant feels the Street has factored in a growth-oriented budget with continued fiscal discipline for FY25.

Sawant, who manages funds worth Rs 1,500 crore across two schemes, believes financials and consumption should continue to drive the economic growth.

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Bharti Sawant

Fund Manager – Equity|Mirae Asset Investment Managers (India)

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Excerpts from the interview:

How has been your journey in the equity research and investment management field?

I have been fortunate to work in the investment field for the last 17 years and over the years have moved from being a novice analyst to a portfolio manager. Equity markets are always dynamic and offer new learnings and lessons every day. Over the years, having covered multiple sectors with different dynamics, I developed the ability to connect the dots and become a better portfolio manager.

In the hindsight, the journey looks simple and fast, yet it went through a lot of ups and downs, giving me a lifetime of learning. I can resonate with the great investor Charlie Munger, who said, “Nothing has served me better in my long life than continuous learning.” Similarly, I hope to keep on learning every day and become a better investor.

What was the one wrong decision that gave you the best-ever learning experience? Was that the best lesson of your life in equity research? 

As equity markets are forward-looking, and many a times decisions are taken keeping in mind the risk-reward probability. Hence, I would say mistakes get translated into lessons, which helps in future decisions. Without naming any specific situation, I would say mistakes are generally in the form of undermining some regulatory risks or misjudging the management’s ability in capital allocation.

As they say, “risk is what's left over after you think you've thought of everything”, one should not take any decisions (in life or investments) at the face value and apart from the basic financial analysis, one needs to be vigilant of the qualitative aspects in the investment field too.

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How equity mutual funds can give financial freedom in the long run?

Any kind of financial investments potentially gives financial freedom and helps live a more stress-free life. When I come across most women, they either still consider gold investments as the best or just use FDs (fixed deposits) as a means of savings. Some do consider equities but do not know which stock to invest and for how long. For all those women, my advice is to consider mutual funds, which save the pain of stock selection and market timing.

For me, equity mutual funds stand out, given the ease of investments, transparency and being tax efficient. However, it depends on individual risk profile which will determine the mix of equity to debt. In short, Mutual Funds sahi hai.

Do you think the Union Budget in June-July and the beginning of interest rate cuts later this year are going to be the next key triggers for the market?

Assuming the incumbent comes to power, the Street has factored in a growth-oriented budget with continued fiscal discipline. As far as interest rates are concerned, it’s more about the timing of rate cuts which could push the markets higher.

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For me, it’s more of sustenance of earnings growth, the comeback of private capex, green shoots in consumption spending and supportive regulatory environment that would be the key triggers for the market.

Do you think the consistent regulatory actions on the financial services industry can hit the investor sentiment?

The regulator would have its reasons and data to back for such regulatory actions.

As far as the investor sentiment go, I think they are more impacted by the suddenness of the regulatory action, rather than action itself. However, as long as the regulatory actions are towards strengthening the business practices, investor sentiment will eventually turn positive.

Have you changed your bets for FY25 over FY24? Which are the attractive themes for next financial year?

The Indian economy stands out, given its higher growth rate versus other major economies. Coming to specific sectors, I believe financials and consumption should continue to drive the growth. Manufacturing too should do well driven by 'Make in India' focus of the government.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.