TMFs and the Art of Investing: Swaroop Mohanty of Mirae MF

make a switch

Mohanty shifted part of his liquid fund investments to target maturity funds to lock in higher returns and a part of his liquid fund investments was used for prepayment of his home loan. “The interest rate on my home loan had gone up to 9.25% in this interest rate cycle. Hence, I thought it would be wise to part repay the home loan to reduce the interest burden,” says Mohanty.

His equity exposure remains at 70%, while his debt exposure (including Employees’ Provident Fund, Public Provident Fund, etc.) now stands at 15% of his total portfolio, up from 25% earlier.

In the next 5-6 months, he is aiming to replenish his liquid fund reserves. For the time being, he says his equity portfolio should help in any contingencies. He has 5% of his portfolio in physical gold.

alternative investment

Mohanty made alternative investments by investing in a few startups in 2020 and 2021, but didn’t find much opportunities in the startup ecosystem last year.

According to a report by PwC India, the total startup funding in 2022 is expected to be $24 billion, down 33% from the previous year. There has been caution in general, both among startup founders and investors, where it pertains to deal-making.

Seeing the lack of opportunities in the startup ecosystem, Mohanty adds art to his alternative investment portfolio “My wife is leading our art investment portfolio. She has taken a lot of interest in it and is doing research to understand various artists, their works etc,” says Mohanty.

“The Indian art market is very vibrant and attractive. There is also transparency in terms of pricing. For example, the same artist will get the same price across countries. The only thing that matters is that the work has to be authenticated and this is where art galleries and art curators come in handy. For us, this could be the start of an enriching journey as art investors,” he says.

Mohanty regularly discusses investments with his wife. “My wife is well aware of our portfolio and our approach to investments. We discuss our investments regularly when we review it,” he says.

other investments

Over the past year, Mohanty wanted to increase his international exposure as part of his overall portfolio, but could not do so given the international investment limits for mutual funds.

In January 2022, the Securities and Exchange Board of India (SEBI) asked mutual funds to stop accepting fresh inflows into international mutual fund schemes investing in foreign stocks, following directions from the Reserve Bank of India. In June 2022, SEBI gave some headroom to international schemes to accept inflows and invest in stocks listed on foreign exchanges, but only to the extent of investments that were redeemed by investors since the ban was imposed.

Since Mohanty’s other investments have either increased or remained flat, the share of international exposure in his overall portfolio has come down. From 10-11%, it has become 5-6% of their total portfolio.

Within equities, Mohanty remained in Large and Mid Cap. He does not want to take small cap risk as this portfolio is for his retirement fund.

Around 85-86% of his total investment portfolio is in schemes of Mirae MF. However, Mohanty was able to make some investments on the personal front.

lifestyle changes

A passionate music lover and an audiophile, Mohanty was finally able to fulfill his dream of having a proper music system in his home. He used some of the profits from his equity portfolio to buy a Thorens turntable, a Macintosh amplifier, and other high-end audio gadgets needed for such a music system.

advice to investors

What advice does Mohanty have for investors amid the current market volatility and changes in taxation rules?

“There is a law maker and a law follower. Investors fall into the second category. So, there is no point in debating it,” he says.

As far as Indian markets are concerned, he says that investors are spoiled for choice in Indian equity markets as “this is the best structural story that is starting to play out for a long time”.

He says this is a good opportunity for equity investors who are in the accumulation phase; Even international equities are available at attractive prices, he says. “Debt markets don’t have as many cycles as equities, but there can be opportunities at different points in time. This is a good opportunity for investors who don’t have enough debt exposure to fill that portion of their portfolio.” and they lock in investments at higher rates.”

Mohanty, however, cautioned that investors need to stick to their investment targets without getting too sentimental as the news flow may not be positive in the near term.

Mohanty, a wildlife and travel enthusiast, has a few holiday plans for this year. He wants to visit Tiger Reserve Tadoba National Park. He also plans to visit Japan and South Korea.