Mr. Jinesh Gopani

Head - Equities. Axis MF

Jinesh Gopani is the Head of Equity at Axis AMC. He has joined Axis AMC in 2009 as Equity Fund Manager and worked his way to Head of Equity in 2016. He currently manages the flagship Axis Long Term Equity Fund amongst other funds.

Prior to Axis AMC, Jinesh was associated with Birla Sunlife AMC as Portfolio Manager, where he was responsible for alternative assets across growth, value and dividend basket. He was associated with this company from June 2008 to October 2009. He was also associated with Voyager India Capital as a Sr. research analyst responsible for BFSI & Infrastructure sector and held a sectorial portfolio manager role for investments. He was with Voyager India Capital from February 2006 to May 2008.

Qualification: - Master's degree in Finance from the University of Mumbai and has been actively managing money since 2007

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Q. How do you see the present fall in the markets in terms of the historical corrections which have happened in past?
Answer:
The outbreak of Covid-19 has had an unprecedented impact on asset classes globally with equities witnessing their fair share of correction. Since the outbreak gained momentum in January 2020, equities have lost approximately a third of their value on the back of growing business uncertainty amidst a nationwide lockdown implemented in most economies. What has been devastating is not just the extent but also the pace of the correction - a sell off of 35% in 20 days is pretty much unprecedented. By way of comparison the market correction during the global financial crisis even though it was ultimately steeper took 6-12 months to play out. While such an event has no reference point from the past, we have seen markets have the tendency to climb the wall of worry and go on to make newer highs.

Q. The equity markets have also see huge volatility over the past weeks. Can you please comment on the same?
Answer:
Equity markets are undergoing a phase of heightened volatility and unmatched business uncertainty as the lockdown has had a severe impact on business viability and survival. In the near term, markets will continue to remain volatile till the cloud of uncertainty remains. We believe a lot of the volatility has to do with the ETF activity. There has been an avalanche of coordinated selling from global funds – especially ETFs over the last month which has affected all global markets including India. In recent years, ETFs have become a big part of global flows and have the ability to cause bouts of volatility. But the flipside is that they can return at the same speed at which they exited.

Q. What is your assessment of the economic fall-out, both domestically and globally, from the present crisis?
Answer:
The world is currently witnessing an unprecedented event in the history of mankind and at present, survival is the primary concern. With majority of the economies around the world currently in a state of lockdown, all economic and social activities have come to a grinding halt. While the exact extent of the impact is unknown, growth is going to take a severe hit over the next few quarters as the global growth has more or less come to a standstill. The projections of a global recession (as stated by IMF) have moved from the next 2 quarters to entire 2020 as it will take time to get things back to normal life. In India, analyst are still assessing the impact the lockdown will have on growth but initial estimates hint at a loss of a few hundred basis points in GDP growth for FY21. Based on the last quarter numbers, we were growing at 5% and a few hundred basis point fall will mean growth will remain more or less flat for FY21. But if India is successful in containing the spread of the virus over the next 1-2 months, it will be one of the countries to lead global growth.

Q. Which sectors and segments of the equity markets would you advise new investments in?
Answer:
The pandemic has raised a lot of questions on existing business models and a lot will change once things come back to normal. We believe that only businesses which have the ability to adapt to these changing times will come out as winners over the medium to long term. Incrementally, we are looking at sectors where earnings predictability is high as businesses have taken a massive hit with respect to continuity. As long term investors, we are also looking for businesses and management who we believe have the right to win in next 2 years.

Q. What is your fund house strategy on your investments? Are you changing your underlying holdings and allocations?
Answer:
We at Axis, have always remained true to our investment strategy across time periods. Our emphasis on quality is core to our overall investment strategy which helps us in identifying good stocks in good times and in bad. As we look at our portfolio and cash levels, we are extremely confident of how we are placed and believe that we are ready to navigate any kind of market moves with the goal of generating a sustainable long term performance for our investors.

Q. What would you advice to investors who have seen huge correction in their investments?
Answer:
Investors who would have invested over the past 12-18 months are very likely to see their portfolio take a hit as the correction has been severe. When markets see drastic cuts, they also reward / compensate investors who stick to their investment plans and stay invested. Historically, it is seen that investors who stay invested during the tough times and those who have actively taken the opportunity to add to their investments have been rewarded as markets normalize. Equities should still be a preferred asset class of investors looking to build and maintain portfolios with a 3-5-year horizon.

Disclaimer
Source: Axis MF Research

Sector(s) / Stock(s)/ Issuer(s) / Top instruments with increased or decreased exposure mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold.This interview represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable. While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. Axis Mutual Fund will not be liable in any manner for the consequences of such action taken by you. The information contained herein is not intended as an offer or solicitation for the purchase and sales of any schemes of Axis Mutual Fund.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

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