HSBC MF CIO avoids aggressive bets, sees value in banks, selective small caps

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Venugopal Manghat, CIO–Equity at HSBC Mutual Fund, which manages funds worth over $14 billion, advised against aggressive positioning in the market right now. but noted that corrections across sectors have created opportunities.

Manghat has maintained cash levels between 2% and 5%, and focused on restructuring portfolios without making large directional shifts.

Among sectors, he sees private banks offering better risk-reward after corrections, while public banks may face pressure on margins in the near term.

For the full interview, watch the accompanying video

 

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He also sees opportunities in small caps. “This will be selective… you have to pick and choose,” he said. The approach should be based on identifying companies with stable earnings potential over the next few years, with patience required to generate returns.

Precision engineering and manufacturing sector is another sector that is likely to see growth, supported by demand from data centres, defence, and nuclear sectors. Companies in this space could benefit as investments increase over time.

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