DSP Mutual Fund Is Increasing Exposure To These Two Sectors
There is a clear sign of capex acceleration by the government across segments like railways and defence, says Vinit Sambre.
DSP Mutual Fund has enhanced exposure to healthcare and the broader engineering space, as it expects these themes to play out over the next few years.
"As a house, DSP Mutual Fund has enhanced exposure to healthcare. It is underperforming year-to-date but this gives us a good entry point into a sector which is neglected right now," Vinit Sambre, head of equities at the asset management company, told BQ Prime's Niraj Shah.
According to him, the core business metrics are fundamentally sound.
"Despite facing some bit of transitionary pressures in high raw material prices, these companies are delivering good cash flow. Gradually, we are looking to increase exposure. Over the next 1-2 years, this can become a good category to own," he said.
The broader engineering space is also something they are looking at, Sambre said.
"There is a clear sign of capex acceleration by the government across segments like railways and defence. PLI schemes are also adding to the momentum. These companies are seeing good order inflow. It's a good long-term view as well. But we are aware that these companies are not trading cheap, so we are cautious and slow on adding them."