Sensex on course for 100,000 in 5 years- Mark Mobius

Mark Mobius, founder of Mobius Capital Partners, sees the Sensex touching 100,000 in the next five years.

Speaking at the Morningstar Investor Conference, he said that as the market fluctuates, it provides the chance to seize undervalued assets and conserve cash for strategic investments.

“There will be corrections on the way. I pray for corrections because it gives the opportunity to buy cheap. Such a good opportunity was during Covid. You don’t just ‘buy value’, you ‘buy good stocks’, with high return on capital, lower debt, and where competition is lower,” said Mobius.

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India is the best bet in emerging markets, according to Mark Mobius

India is expensive in terms of price-to-earnings vis-à-vis its emerging market peers, admitted Mobius. “However, a lot of people are only focused on the ‘P’ and not the ‘E’. A good company in this country has the potential to grow at 12-13%,” he said, adding that investors must look at valuations on a 1-year, 3-year, or 5-year earnings basis.

According to Mobius, India’s diversity and demographics works to its advantage. “India’s dynamic and diverse economy is a testament to its strengths. Its linguistic and cultural diversity, which some may perceive as a weakness, is in fact a formidable asset,” he said.  

India is the second-largest exposure in his portfolio, and he has made a lot of money in the last two years, he said. “So, we are very positive on the Indian economy and companies,” said Mobius. The ace investor said he is not only a fan of India as an investment destination, but also because of its movies, with his favourite being the blockbuster Baahubali.

As regards the mutual fund industry, he highlighted that the trend of passive investing has grown significantly. He batted for a balance between passive and active investing.

“ETFs have become a huge product,” he said, adding that it’s like following the herd. However, he said that if one had invested in an ETF tracking the S&P500 a few years ago compared to an active scheme, the latter would have outperformed.

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