K Dileep started his career with Geojit Financial Services Ltd. in the year 1999. He has over 23 years of experience in the capital market industry, in which he spent almost 7 years in GCC countries, overseeing Geojit’s Middle East operations. He holds a Management Degree from the University of Calicut.
As Head of Geojit’s Portfolio Management Services, his prime responsibility is to construct and manage the portfolios of its clients.
Dileep has contributed more than 300 articles in leading national dailies on Capital Market. He also appears daily on visual media in their business segment.
Q) 2022 is slowly turning out to be a roller coaster ride for investors as well as fund managers with too many variables impacting the Indian market. How are you managing the volatility in your fund?
Ans: Volatility is part of fund management. When we see a long term return of 15% CAGR, volatility (especially coming down) is a boon, and we would like to add stocks at lower levels to enhance the returns in the long term. We have seen volatility during Lehman crisis, PIGS crisis, COVID, all finally led to superior returns if we have invested during the crisis time.
Q) How much AUM do you manage and how has the fund performed so far in 2022?
We are managing close to Rs 500 crores. Our portfolios have performed very well in 2022, especially the Advantage Portfolio. As of September 2022, the one-year return of our Advantage Portfolio is 11.4% compared to Nifty Midcap 100, its benchmark returns of 0.90%.
Q) Why are FIIs selling best performing market? India stands out among the EM pack, but still facing outflows. When will the trend reverse?
Even though we are the best performing market, FIIs’ risk appetite is expected to come down when Fed hikes interest rate. Hence, they are likely to reduce their risk exposure in Emerging markets.. The trend will reverse as soon as the the FED signals the interest rate has peaked or inflation has peaked in US.
Q) What is the kind of cash levels you are sitting at – are you putting aside more cash to be deployed later?
We were holding an average cash of 3 % till last month, of which we have deployed one third last week. At present we hold only 2% cash.
Q) Where do you see markets in Samvat 2079?
This year will be sector specific and stock specific. Market may be neutral to positive in the first half whereas second half is likely to be much better given FED may stop hiking the rates.
Q) Which sectors according to you could remain in limelight till next Diwali?
Banks and Pharma sectors are attractive.
Q) What are your top holdings, and did you rejig your portfolio recently? Any new entry or exit in your portfolio?
Tata Elxsi, Greenpanel, KEI, KVB are our top holdings. We did not exit any. Booked some profits in Tata Elxsi.
Q) Please tell us something about yourself (study+experience)? How you fell in love with equities – what was the turning point?
I started my career with Geojit in the year 1999 after completing my graduation in Commerce. Right from the start I used to watch the stock market very closely and follow its trends. I used to watch investment stories and read investment experiences of proficient investors and fund managers. My thirst to know more about the market created a passion for equities. Since 2010, I am the Portfolio Manager for Geojit.
Q) SIP contributions have only increased significantly in the past which is a positive sign for Indian markets. Do you see the trend continuing? Any ballpark figure you see by the end of FY23?
Seeing this as a structural trend, given today’s youth do not want to lock in their money in real estate or any hard assets as they prefer moving to new city/country for better career opportunities. Moreover, financial assets awareness is increasing. Also, SIPs have given good CAGR returns in the long term in the past. Hence, we see this trend continuing and indeed the growth rate likely to increase further. Don’t want to settle on any ballpark figure and directionally very positive.
First published in The Economic Times