A guide by Daylynn Pinto to navigating volatile markets!

Daylynn Pinto is a senior fund manager- equity at IDFC Mutual Funds with nearly 17 years of experience.

The Indian capital markets are going through a roller coaster ride. A few weeks back, the main concern was about the US Fed’s tightening policy. Today, countries across the globe are concerned with geopolitical conflicts between Russia and Ukraine.

While the broad market index S&P BSE Sensex was trading above the level of 60,000 in January, the markets are now witnessing a steep correction. Another concern is the rising inflation.

So how do investors navigate through these challenging times?

Take some help from market veteran Daylynn Pinto.

Daylynn Pinto is a senior fund manager- equity at IDFC Mutual Funds. In this position, he is in charge of managing the following funds- IDFC Sterling Value Fund, IDFC Multicap Fund and IDFC Tax Advantage (ELSS) Fund.

In an interview with Value Research, the fund manager talked about his investment approach along with some investment themes for the coming decade.

As per an interview, the fund manager, over his journey of 17 years in the markets, has developed a BARP strategy for himself. BARP stands for 'Buy At the Right Price'. As per this strategy, he would prefer to invest in any type of business which might be out of favour or considered to be a low-quality business by the market currently, given that there is an earnings growth opportunity over the medium term and is decently priced.

Keeping the inflation factor in mind, the fund manager expects the cyclical such as financials, especially lenders, commodities, infrastructure and real estate to do well with inflation over the next three to five years. Looking back, these are the sectors that have underperformed over the last few years.

Talking about the upcoming investment themes, he expects three themes to play out in the next 10- 15 years. First, is the electrification of vehicles. Second, the new energy space, that is, the move towards greener and cleaner sources of energy. And third, infrastructure development.

Taking guidance from an experienced person like Daylynn Pinto can prove quite useful for investors facing a dilemma about how to go about investing in these challenging times.