Is the excessive orientation towards value stocks behind the recent good performance of a few funds?
If you look at the last ten years, the index has more or less remained flat. That does not mean the Indian equity market has given negative returns. You can count many companies that have multiplied wealth for shareholders. And they were not surprise candidates. For example, companies such as Hindustan Lever, HDFC, Dr Reddy’s and Infosys. The investor had a view that these companies would last five-ten years. Are these companies growth or value stocks? That classification does have some value. But, if you have to pick a common thread, what comes out is they are good businesses under good management. Are you saying that in emerging markets, the distinction between growth and value stocks are irrelevant. That all stocks are growth stocks? No, it is not exactly that. If you are following value philosophy, you cannot ignore the growth aspect. Somewhere in your projections, the growth projections are factored in. If you are following the growth philosophy, the value aspect cannot be ignored
