ICICI Prudential’s Alternates quarterly average AUM has reached Rs 80,965 crore as of end-September. Within which, the PMS AUM rose 21.4% year-on-year to Rs 30,791 crore, while AIF AUM stood at Rs 24,260 crore. In an interaction with Moneycontrol, ICICI Prudential AMC’s PMS & AIF CIO, Anand Shah explained his thesis behind remaining overweight on manufacturing, and underweight consumption. This is a call he took in 2024 and has thereon, continued to bet that a weaker rupee, higher inflation and import substitution will favour producers over consumer-facing companies. He also prefers value over growth, continues to favour mid- and small-cap stocks for stock-picking opportunities, and has begun adding selectively to IT after staying away earlier in the year.
Q. Your strategies do not follow a rigid large-, mid- or small-cap split. How are you positioned today?
Our focus is on companies that create wealth, not market capitalisation. Over three, five or seven years, it comes down to business quality, management capability and valuation.
Several large-caps remain attractive. But a greater proportion of mid- and small-caps appear expensive.
India’s market breadth is a strength. Opportunities exist across IT, financials, banks, NBFCs, oil and gas, power, electricals and metals. The question is not whether to own large-, mid- or small-caps, but which companies to own within each.