We are very bullish on precious metals like gold and mining companies, says Abhishek Banerjee, smallcase Manager & Founder, CEO of Lotusdew in an interview with MintGenie. He also talked about gold stocks, precious metals and packaging companies.
Edited excerpts:
When did you start investing or trading in the equity market? What inspired you to enter into equities?
I literally started when I was 8 years old. That time I had chosen to invest in SAIL and Container Corporation. I was obviously not allowed by my parents to actually execute it, but I was attracted to investing as a child - though now I know it's not child's play!
Despite the global equities not performing well, India has managed to outperform the other emerging markets. Your views on it?
India is the only large economy with near positive real interest rates, controlled growth and inflation, as well as a large domestic market. Also India is becoming its own investment destination by being one of the top 5 economies globally and soon to become third - where it will decouple from other emerging markets and trade on its own fundamentals - which to me looks better than many.
AIt has emerged from the cohort of emerging markets into a market of its own - luring global investors with a decade which is said to be India's decade. I think with the heady mix of digitization, demographics and democracy, India will emerge as a market that will make many international investors' careers for those who had the gumption to bet on it.
Your favourite sector of the year and what returns have this sector delivered in 2022?
I am bullish about capex led industries in smaller companies especially related to power, mining and heavy industries. That said, mid market IT companies continue to remain exciting.
What is the sectoral outlook for next year?
We are very bullish on precious metals like gold and mining companies. Among basic materials paper packaging has done really well in the last 12 months, while Media agencies have seen the worst performance. Our outlook remains strong for materials in general as companies redesign their supply chain taking India into account.
Which stock has outperformed/underperformed in this sector?
Stock wise the largest dispersion was seen within the consumer discretionary sector where apparel did really well compared to things like media and publishing.
Which stock would you recommend/ do you expect will perform well?
We don't provide stock specific ideas without understanding the risk profile of the person, but we think gold related stocks like Mannapuram, Rajesh Exports, Goldiam etc remain our favourites and we continue to hold them.
What new year resolution should new and young investors adopt to bring investing discipline in themselves?
I think you can gamify investing by putting a spending tax on yourself. Look at what you think is wasteful spending every week and invest 10% of that in some mutual fund.
Disclaimer: The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.
