284879 SIP myths you must know!

Rakesh Jhunjhunwala continues to believe that India is on the verge of a big bull market despite a blip in the form of a coronavirus pandemic. He thinks that India is well-placed to report double-digit growth in the next 4-5 years. However, Jhunjhunwala highlighted that a thought process of Indians is stopping it to achieve the sky.

“We Indians don’t believe in ourselves despite the most preferable demographics in the world. Indians are the most skilled people in the world. There is a need for Indians to be optimistic. I want to write an article on: Believe in yourself, my fellow Indians, we will do it. We can achieve prosperity and there is a need for Indians to be optimistic,” Jhunjhunwala said, adding one day per capita income of India will exceed that of China.

While sharing his thoughts on the pandemic, he said Covid is a flu and worries for the market will be over once we get the vaccination. “By June I think a good part of India will be vaccinated or herd immunity will be developed,” Jhunjhunwala said at an AIMA Conclave on Tuesday.

Commenting on the domestic equity market, India’s second-biggest retail investor said he is extremely bullish this time and believes battered stocks may deliver a good return. “There will be a big upturn in the Indian economy. Cyclical stocks and the most battered smallcaps and midcaps will outpace blue chips like HDFC and Titan over the next 4-5 years,” he added.

Of late, Jhunjhunwala cut his stake in Titan to 5.1% in the March quarter from 5.3% in the preceding quarter ended December 31. Asked why he has not bought any other FMCG player, Jhunjhunwala said, “ It has been such an overwhelming life in Titan that there is no space for other scripts. Titan is doing well, why should I sell it. Where will I get money to buy new stocks?”

Going ahead, he sees huge demand for metal going ahead due to major investments in the infrastructure sector. Jhunjhunwala also believes that India is going to play a very big role in manufacturing through the PLI scheme. He also holds a bullish view on the real estate sector. “I am not bullish on fancy real estate. However, I am bullish if I buy land around the tier-II towns, or if you buy land along the road where a Metro is coming,” Jhunjhunwala said.

He said his portfolio is not very structured and ‘it is all about his feeling and intuition’.

“I have invested in two pharma companies, insurance, KPO, shoe retailer and some schools. They all are a long-term investment for 10-13 years,” said Jhunjhunwala, who is often referred to as India’s Warren Buffett.