Chief executive officer of Prudential ICICI MF, Pankaj Razdan finds today's current levels very attractive for the company. He therefore confirms that the company will seize this opportunity to buy stocks of its choice.
Razdan also denies rumours regarding redemption pressures and says that the company actually saw net positive flows during the last five-six days.
Excerpts from CNBC - TV18's exclusive interview with Pankaj Razdan:
What are you doing after a 10% slide?
With today's current level, it is very attractive for us. There are some schemes where we have cash and selectively at our level, where we believe the prices are right, we are continuing buying on those schemes.
Have you started seeing redemption pressures yet?
Not at all. I have also heard some rumours, but the fact is that in the last five-six days, when the market went through this carnage, we have seen net positive flows.
For most of the mutual fund fraternity, would you even gauge what sort of cash is still lying in the kitty at this point? What sort of money could be invested at these levels?
It is very difficult, but on an average, it would be close to 8-10 per cent in cash. Some of this cash would have started moving in the last two-three days.
So you have been net buyer for the last three sessions?
We have been buying on scheme by scheme basis, but today it looks very attractive to us and there are enough number of schemes, where we have substantial cash, which can allow us to do buying of our choice.
In absolute terms, all schemes put together, how much cash would you be sitting on?
We manage about Rs 9000 - 10,000 crore (Rs 90-100 billion) of equity. Except a couple of schemes, we have a substantial cash of about 8-9 per cent, that is Rs 600-Rs 800 crore (Rs 6-8 billion) cash.
Would you be deploying that right now, using this opportunity?
Yes.
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