shankar sharma investment advice: Why does veteran Shankar Sharma have his eyes on smallcaps?

    Market veteran and a well-known stock picker Shankar Sharma doesn’t actively manage funds these days. But if someone asks for investment advice, his favourite segment remains smallcaps. Sharma has always been known for his smallcap bets, many of which have become multibaggers.

    “I own a lot of companies because I believe in investing and in smallcaps in general,” Sharma, the founder of GQuant Investech, recently said in an interactive session. Sharma believes in diversification rather than a concentrated portfolio, and gradually increases exposure based on the business prospects of the company.

    “It’s not like the promised land in all the companies to be clear. There will be failures, and I am cognizant. I have been around for 30 years in this game,” he said.

    Sharma is a believer that fund managers should manage public money in a bear market and not in a bull market. “You should manage public money in a bear market because that assures your bread and butter. In a bull market, you should manage your own money because why should you settle for half a percent when you can make a thousand percent?,” he says.

    Sharma is extremely bullish on the India growth and sees prospects of benchmark Sensex hitting the 1,00,000 mark. Seeing the nominal GDP growth rate trend, Sharma believes India can grow 12-14%.

    “It’s probably the best time in the history of modern India that you should be out there investing, because a $3 trillion economy will grow. You will simply add $150-200 billion in GDP every year which used to be the GDP when I entered the market…the scale is massive,” says Sharma. And, in a growing country like India, Sharma sees some incredible public offers coming in the way of Dalal Street, despite the bad experiences with some of the new-age tech firms.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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