Amitabh Mohanty's insights on investing in India amidst global economic dynamics

Amitabh Mohanty, MD and CEO of JM Financial Mutual Fund, holds a positive outlook on India's long-term growth trajectory and believes that the global economic slowdown may have limited impact on the country. In an interview with Mint, he shares his perspective on investment strategies, market cycles, and factors influencing India's economic landscape.

Investment strategy in the current Market

Mohanty advises investors to maintain a disciplined approach to investment. He emphasizes the importance of analyzing one's risk tolerance and investment horizon for effective asset allocation. Sound analysis, according to him, can unearth promising stock opportunities, regardless of global or domestic macroeconomic conditions. While acknowledging occasional market hiccups, he underscores the enduring potential of the Indian market over the next few decades.

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Market cycle and probabilistic perspective

Regarding the current market cycle, Mohanty refrains from categorizing it as bullish or bearish. Instead, he adopts a probabilistic approach, considering the favorable domestic macroeconomics but also recognizing global macroeconomic headwinds. His strategy involves continuous portfolio evaluation, focusing on value and safety margins. The aim is to identify pockets of value using data-driven models and align portfolios accordingly.

Impact of crude oil prices and monsoons

Mohanty acknowledges that rising crude oil prices and poor monsoons can pose challenges to the Indian economy. However, he highlights India's resilience in managing these challenges. Buffer food stocks and improved irrigation infrastructure help mitigate the effects of poor monsoons. Rising crude prices may lead to increased adoption of electric vehicles, contributing to long-term sustainability by reducing fossil fuel dependency.

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