Rajesh Bhatia, Chief Investment Officer at ITI Mutual Fund, predicts that the South market will play a significant role in achieving the company’s target of reaching an AUM of ₹1 lakh crore in five years. Bhatia highlights the South as a well-informed market with a strong understanding of financial products, attributing a substantial portion of the company’s assets to the region.
Despite market fluctuations, ITI Mutual Fund’s AUM has been fluctuating in the range of ₹9,500 crore to ₹10,000 crore. Bhatia anticipates certain sectors to perform well, especially if the US economy thrives, benefiting IT and pharmaceutical sectors. Additionally, he sees potential in digital-driven businesses such as digital commerce, quick commerce, insurance aggregators, and payment companies.
Acknowledging headwinds such as the economic slowdown and limited fiscal and monetary flexibility, Bhatia emphasizes the need to identify new growth drivers. He expresses concern about proposed US tariffs potentially impacting global markets. However, he remains optimistic about India’s long-term growth prospects, citing positive international investor sentiment and domestic economic indicators.
Bhatia distinguishes between short-term cyclical challenges and long-term structural stability, noting that current concerns are more cyclical. He highlights the need for fiscal consolidation post-Covid, aiming to reduce the fiscal deficit from over 9 percent to 4.4 percent by FY26. As government spending decreases, there may be a dampening effect on the economy.
Overall, Bhatia remains positive about India’s economic trajectory, emphasizing both the challenges and opportunities present in the evolving market landscape.
