J Venkatesan, a Chartered Financial Analyst (CFA) and Cost Accountant, has also completed his Post Graduation in Commerce. He has an experience of more than two decades in the banking and asset management businesses. At present, Mr. Venkatesan is working with Sundaram Mutual  Fund as  an Equity fund manager.

In the last one year the relative performance with respect to benchmark and the peers has been improving.

2. Which are the top sectors you are currently bullish on, and what's the rationale behind your call? On the contrary, which sectors are you avoiding at this point?

We are currently positive on IT, Pharma and Telecom. In IT, the global demand environment has been good and the stocks are available at reasonable valuations. Pharma again is benefiting from growth in US generics story. Both these sectors play on global growth and not impacted by domestic growth slowdown. While in Telecom, the recent auction resulting in higher capex and the potential entry of a new player pose threat to the current incumbents, the data story remains strong and would play in the near future.

The sectors we are underweight on are utilities because of regulatory headwinds, and on materials again on regulatory issues. We are also underweight on consumer staples marginally on account of expensive valuations.

3. In your opinion what is the current health of the Indian Banking system? Are there hidden stress points which have not been priced in by the markets?

The current health of the Indian Banking system is not good and if the slow growth environment persists for some more time, things may get worse still. We still believe the growth will return to the economy with the new government in place. The pain in the infrastructure space, especially power is yet to be reflected in the books. The restructuring window will go by March 15. If growth arrives faster, then situation will improve. Otherwise we will get to see more stress points. Having said this, if one takes a medium term outlook, the pain is already priced in by the markets.

4. What can investors expect from Sundaram Taxsaver in terms of performance and investment philosophy?

 As the investors are typically long term in nature, we have a fair mix of large caps and midcaps. Midcaps will account for about 35%. We expect midcaps to start performing once the economy comes back and the scheme also to do well. The investment philosophy remains the same. We look for quality growth companies at reasonable valuations.

5. You manage some theme/sector based funds as well. How does this benefit the more diversified funds managed by you, is some flavor of those funds visible in the diversified funds managed by you?

Managing the sector or themetic funds definitely helps in adding some flavor to my diversified funds. One can notice the same in my diversified funds.

6. In view of the political uncertainty in the country, what strategy would you suggest for investors in the current market?

My advice to investors is that this uncertain phase should be used for building long term investments in the market. Let us look at the political risks a little more closely. If there is a stronger government formation at the centre, market will rerate quickly. On the other hand, if there is a weak coalition that comes to form the government, market will correct to some extent. But that would be temporary in my view. The political risks are always overstated in India. Remember what happened in 2004. In the past, the weak governments have taken good reform measures in India. No government can forsake reforms except to their political peril as is seen now. Even to achieve their political agenda, you need growth in the first place. And what we need today is not any big bang reforms. We need basic governance and that will ensure the market to come back. In my view, the Indian story can be delayed but cannot be taken away or denied.