Axis Securities PMS Fund Manager Neeraj Gaur is optimistic about the Indian economy and markets in FY26, citing factors such as a stable currency, improved FPI flows, higher government capex, and the lower income tax benefit from April. He expects a turnaround in the economy, driven by high-frequency economic indicators improving from May/June 2025 and system credit growth increasing in the second half of the year.
Gaur believes that investors should not judge mutual funds solely on 1-year performance, but rather look at 3-year and 5-year performance. He advises investors to re-evaluate their fund holdings if they have underperforming funds and consider shifting assets to fixed-income or balanced funds to weather market fluctuations.
In terms of his own fund strategies, Gaur’s Axis Securities Pure Growth fund outperformed the market in February, while his Axis Securities Pure Contra and Axis Securities Kaizen strategies underperformed. He plans to reduce his banking underweight position if liquidity improves and maintain his overweight position in pharma and discretionary consumption sectors.
Gaur also sees opportunities emerging in the global exports space due to uncertainty around Trump Tariffs, and is positive on pharma exports and the textile sector. He expects India’s growth story to remain compelling over a multi-year horizon, driven by a young demographic and structural reforms.