| Transcript of Chat with Mr.Jayesh Shroff,Fund manager, BoB Mutual Fund.- 2nd September 2002 |
[04:29:59 PM] => Myiris: Welcome to the live chat session.
[04:30:54 PM] => Myiris: Our guest today is Mr Jayesh Shroff, fund manager, BoB Mutual Fund. At the time of this conversation/chat, Mr Shroff may or may not have positions in the stocks mentioned below, though holdings may change at any time. The views expressed by Mr Shroff are based on information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such.
[04:31:17 PM] => Mr Shroff, his company and its affiliates, officers, directors, partners and employees may, from time to time, have long or short positions in, buy or sell and deal as principal in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed.
[04:31:29 PM] => None of the information contained herein constitutes, or is intended to constitute, a recommendation of any particular security or trading strategy or a determination that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. You should consult with and rely upon your own advisors whether and how to use such information in making any investment decision.
[04:31:47 PM] => Lastly the views expressed by Mr Shroff have no bearing whatsoever with that of IRIS Ltd. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website www.myiris.com.
[04:31:57 PM] => Myiris: Welcome to the chat session, Mr Shroff
[04:32:57 PM] => aaphadnis: When shall I sell my Digital Global holding?
[04:34:47 PM] => JS: I'm sorry I won't be able to comment on individual scrips. But let's remember one rule, keep your target and no matter what happens sell when the target is achieved.
[04:35:44 PM] => Raikarpp: When stock markets are hovering at lower levels, and considering the current scenario, markets are expected to remain dull, how are your pure equity and balanced schemes expected to perform?
[04:36:48 PM] => JS: The performance of all types of mutual funds depends on the state of its underlying market. Considering that the current market situation is range-bound, the performance of equity and balanced funds will also remain in a narrow range. Of course, there will be outperformers and underperformers, but the NAVs are not expected to run away. In our case, we have consistently outperformed the benchmark Sensex and hope to continue the good work.
[04:38:16 PM] => MariaG: Could you elaborate on your investment philosophy?
[04:39:58 PM] => JS: We follow a mixture of growth and value strategy. But one thing is certain. In both cases, we will not invest in a company where we do not have absolute trust on the management. That is our basic criteria. Then based on market condition we look at value or growth strategy. Apart from that, we do not strictly follow top down approach, in a market where so many opportunities are available, we also pursue bottom up approach.
[04:41:19 PM] => Mano-kul: Which IT scrips look good short-term?
[04:43:30 PM] => JS: As mentioned above, go for sound management, it might not give you superlative returns but your money is relatively safe. During such turbulent times follow the principle of `Safety First.` Applying this principle go for top companies where the transparency and disclosure standards are satisfactory.
[04:45:13 PM] => V J Singh: What is your outlook on the pharma sector?
[04:46:19 PM] => JS: This is one sector with a lot of stories in the pipeline. My advice would be switch from MNC pharma companies to Indian pharma companies. The kind of research initiatives that the Indian pharma companies are taking have a very promising future. The research outsourcing story is yet to unfold fully in the case of Indian pharma companies. Amongst Indian companies also, go for companies clocking consistent growth, having a large export portfolio and conducting some serious research.
[04:48:32 PM] => E-invest: How do you see the performance of equity funds in the coming year? Without the market situation improving, how do you expect the performances to go up?
[04:51:28 PM] => JS: Purely on valuation parameters, Indian markets are very attractively priced. But, there are so many other factors that affect our markets and market sentiments. So, if we are able to sustain the political and social stability and some smart moves by the government on the disinvestment front, the market is headed for an upmove. But, as I said our markets are influenced a lot by socio-political factors rather than purely economical factors so that risk is always there in the market. Apart from that, with US market reeling under tremendous bearish pressure the focus of overseas investors has shifted to emerging markets like India, Korea, South Africa, Russia. So if we can attract that FII money we will see a sustainable upmove.
[04:53:16 PM] => Akanaria : Your view on the media sector?
[04:54:51 PM] => JS: But for the transparency or rather lack of it in a lot of listed media companies, we are bullish on the sector. We believe in a philosophy that any sector that is undergoing a major fundamental transformation offers opportunity to make big money. And entertainment and media is the sector which offers this opportunity. The entertainment industry in India is going through a major transformation stage from being an unorganised industry to an organised one. There is going to be a big shake out in the industry with lot of small and marginal players being shunned and market being captured by large and established players. Compnaies who are well entrenched having a reasonably big size and adapting to change will gain immensely from this transformation. However, as said earlier there is still miles to go for companies in the sector as far as corporate governance and transparency is concerned. Therefore one should do careful evaluation of individual companies in the sector before picking up the stock.
[04:56:11 PM] => Kampatus: Your`s is not such a well-known fund. What are you planning to increase your brand image and awareness ?
[04:58:30 PM] => JS: Yes we are one of the smaller players in the industry. But that does not deter us from posturing aggressively in the future. We have recently launched three debt schemes, more than doubled our net assets under management and are competing with the others in the industry as far as investor services is concerned. We are also planning to increase the products that we will offer our investors. Ultimately the performance of the schemes and high standards in investor service offered by us will polish our brand image. We are also advertising through various media to enhance the awareness.
[05:01:55 PM] => GH : Is your fund coming out with new equity funds?
[05:03:58 PM] => JS: It is too premature for me to comment on it but we are definitely thinking about it.
[05:06:40 PM] => Pvkca: we have been looking at some funds going in for midcap schemes? are you looking to launch any such scheme which will invest particularly in midcap schemes?
[05:08:07 PM] => JS: Not as of now.
[05:09:14 PM] => Pushkar : Which are the sectors that you are bullish about and where are you bearish?
[05:10:21 PM] => JS: Energy is one sector where we are very bullish. Indian pharma companies with their export led growth and research initiatives look very promising. Apart from that we are bullish on steel and commercial vehicle segment. I think FMCG and two wheelers might underperform the market.
[05:11:43 PM] => Guest: What do you think for the market in a one-month horizon?
[05:12:48 PM] => JS: Ours is an event based market, that is, a lot of market movement is dependent on happening or non happening of a particular vent or set of events. So, it becomes very difficult to predict the market. Purely on valuations, the market is attractively priced and if the government is able to take the privatisation programme to its logical conclusion than we may see a healthy bull in the market.
[05:14:11 PM] => Manohar : Are mutual funds facing redemption pressures?
[05:14:58 PM] => JS: The market, be it debt or equity, is flush with liquidity. The only question is when will this liquidity translate into investments. So, I do not think any funds are facing redemption pressures.
[05:15:50 PM] => Balram Jain: Is there a good method of identifying quality equity funds? Or is it a matter of luck?!!
[05:16:58 PM] => JS: Definitely this is not a matter of luck. For identifying a quality equity fund, just look at its historical returns, its performance vis-a-vis the benchmark and the quality of its portfolio. With the level of transparency in the mutual fund industry, getting all this is not at all difficult. Get all these details and take an informed decision.
[05:17:46 PM] => Mitra: Which sector do you think will do well in the foreseeable future?
[05:19:18 PM] => JS: I think I have just talked about it two-three questions above, but still...energy, commercial vehicles, steel, entertainment, Indian pharma are looking good.
[05:19:55 PM] => arif_h_raj: In which stock should I invest for short term gains?
[05:20:49 PM] => JS: I cannot recommend individual stocks. But my advice is go for leaders in sectors where you are bullish on. If at all you buy into mid caps or small cap stocks apply strict stop loss limits.
[05:21:55 PM] => Hitesh311: I want to know the ex-dividend date for MTNL and also want to know how and when the strike price in case of options gets adjusted just after ex-dividend. Also please give me prospects for Maars Software, Sterlite Optic and VSNL.
[05:22:44 PM] => JS : I do not know the ex-dividend date. Check out the BSE website for the same. As for prospects of individual stocks, I reiterate my inability to comment on individual stocks. What I would also reiterate is tread with extreme caution if you are buying into second line or mid/small cap stocks. The overall environment for telecom both service provider and equipment/cable manufacturers remains challenging with little hope of an early recovery. Keeping this in mind one can avoid the sector for the time being.
[05:24:25 PM] => Sunilm101: In this level can small investor invest in equity? If yes advice in which sector. If no, then when to enter in equity?
[05:25:51 PM] => JS: I'm of strong opinion that small investors should participate in equity markets through mutual funds route. For investors who are not as informed as other market participants, buying into equity on their own is risky. On the timing front, I've already replied earlier that at the current level of market, there is value in the market but the value can be realised only if other non-economic issues concerning the market remain stable or are resolved.
[05:27:58 PM] => Nobinxxx: moh limited is good to invest?
[05:31:06 PM] => JS : sorry, no stock specific advise. But best to avoid speculative counters in such turbulent times.
[05:31:44 PM] => ABHI1968: AT CURRENT LEVELS WHAT WILL YOU RECOMMEND FOR SHYAM TELE, CIPLA & TELCO?
[05:32:36 PM] => JS : We are bullish on prospect of commercial vehicles and bearish on telecom sector. The detail explanation have been given above. We'r bullish on Indian Pharma companies but go for the companies with high exports and good research capabilities. also search for some near term research/export trigger in case of Indian pharma companies.
[05:33:43 PM] => Myiris: That's the end of the chat session for today.
[05:34:15 PM] => Myiris : Thank you all for logging on.
[05:34:30 PM] => Myiris : We thank Mr Jayesh Shroff of BoB Mutual Fund for his time and valuable inputs.
[05:34:40 PM] => Myiris: We'll be back with more at chatmasala.
[05:34:51 PM] => Myiris: Till then its bye from us.
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