Studying the macroeconomic scenario for taking an interest-rate directional view forms the broader framework
Suyash Choudhary is a competent manager and boasts an overall work experience of over 16 years in portfolio management. His strength lies in his in-depth understanding of the macroeconomic environment, the ability to anticipate interest rate movements and the ability to identify attractive investment opportunities across market segments.
Given duration is an integral part of the strategy; studying the macroeconomic scenario for taking an interest-rate directional view forms the broader framework of the process. The interest-rate direction is determined by conducting a detailed analysis of various influencing factors such as growth versus inflation, fiscal and current account deficit, private sector and government borrowings, fiscal and monetary policy view, money supply, currency market movement and global interest-rate scenario, among others.
This is complemented by an overlay of technical factors where the team examines the demand-supply dynamics to get clarity on valuations and direction of the yield curve. Subsequently, interest-rate direction call and anticipation of yield-curve movement form the basis of portfolio positioning in duration terms.
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- Studying the macroeconomic scenario for taking an interest-rate directional view forms the broader framework
- The investment team takes a relatively long-term view and does not pay much heed to news flows
- Safety and liquidity is the crux of portfolio construction. Hence, taking credit bets is not a part of the strategy
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For corporate bonds, the team lays a lot of emphasis on the promoter group, its track record, and corporate-governance standards.
Suyash Choudhary will not lend to a company facing corporate-governance issues. Additionally, he also looks at companies' competitive standing with regard to peers, its practices, cash flows, liquidity profile, business and financial risks, among others. A noteworthy aspect of the investment approach is that the investment team takes a relatively long-term view and does not pay much heed to news flows. The view, once formed, is applied across fixed-income funds.
Safety and liquidity is the crux of portfolio construction. Hence, taking credit bets is not a part of the strategy. Although Suyash Choudhary invests across the yield curve and segments, he does not shy away from having a significant exposure to a single segment if his views on valuations and interest rates suggest so.
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