M&G Investments' India-dedicated fund remains fully invested despite geopolitical uncertainty and elevated valuations, according to portfolio manager Vikas Pershad. The fund, he said, is maintaining a constructive long-term view on Indian equities and is actively scouting opportunities in select travel-related stocks.
“We've been waiting for more volatility in the airlines, hotel operators and online travel agencies. We've not seen much yet, but that's an area we're looking to add to,” Pershad said in a conversation with NDTV Profit.
While the Israel-Iran conflict and other global flashpoints have raised concerns about risk assets, Pershad noted that the Indian market has been more resilient than expected. The fund has made no major changes to its portfolio in recent weeks and continues to focus on domestic-oriented sectors.
M&G's India portfolio is currently overweight in companies linked to real estate, hospitals, diagnostics, and auto components. These sectors, Pershad said, continue to offer long-term growth potential and benefit from strong structural demand.
At the same time, the fund has been gradually exiting traditional defensives. It is now more underweight on information technology services and consumer staples than at any point in the last two decades, he noted, citing weakening fundamentals and better relative opportunities elsewhere.
Despite staying fully deployed, Pershad said the fund remains liquid enough to respond to any meaningful price corrections. “Being fully deployed enforces discipline—if we want to buy, we have to sell something. And right now, we like our portfolio,” he said.
M&G continues to back active stock-picking in India, with a preference for companies that are closely tied to the domestic growth story, according to Pershad.
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