Motilal Oswal AMC CEO Prateek Agrawal explains why he is avoiding large banks, IT and FMCG stocks
Motilal Oswal AMC is favouring high-growth themes including defence, renewables, hospitals, digital businesses and capital markets, while limiting exposure to large banks, IT, commodities, FMCG and traditional vehicles. Its concentrated, high-beta strategy targets sustained earnings growth and alpha.
Motilal Oswal AMC CEO Prateek Agrawal explained his strategy of avoiding large banks, IT and FMCG stocks, while focusing on high-growth sectors like defence, renewables, digital businesses, hospitals and capital markets. The fund house believes that sectors with sustained earnings growth can outperform the broader market over time.
Agrawal emphasized that investors should seek out alpha, or excess return, by investing in spaces where growth is expected to be sustained for a longer period. This approach allows the fund to build high-earnings-growth portfolios, cohort by cohort, to generate better outcomes for investors. The concentration of the fund's investments in 20-35 names allows for higher risk, but also the potential for higher returns.
Agrawal highlighted the fund's exposure to renewable energy and digital capital markets, which have performed well during market downturns. The fund's preference for growth over value is a house-level view, with most schemes having a similar focus.
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