Axis Quant Fund Insights: Navigating Market Volatility with Karthik Kumar

Explore the dynamic market insights and investment strategies of Axis Quant Fund with Karthik Kumar. Gain a comprehensive perspective on market volatility.


In the ever-evolving world of investments, understanding market dynamics and fund manager perspectives is crucial for investors looking to make informed decisions. In a recent episode of The Money Show, Karthik Kumar, Fund Manager at Axis Mutual Fund, shared valuable insights on the Axis Quant Fund and provided a comprehensive analysis of the current market scenario. In this article, we’ll delve into the key points discussed in the interview, including market movements, valuations across market caps, global trends, and the strategy behind Axis Quant Fund.

Market Overview:

As Karthik Kumar highlighted, the markets have experienced a period of sideways movement with distinct stock-specific actions. The discussion opened with an exploration of the current market scenario, addressing the challenges investors face in determining entry or exit points. Kumar emphasized that the recent market pause is a natural correction after a robust performance in 2023.

Axis Quant Fund Insights: Navigating Market Volatility with Karthik Kumar

Valuations Across Market Caps:

The conversation then shifted to the critical aspect of valuations across market caps. Large-cap stocks were discussed as trading at around 20 times next year’s earnings, not considered outright expensive but reflecting a premium compared to regional markets. In contrast, midcaps and small caps are currently at their all-time highs in terms of valuation. Kumar stressed the importance of stock selection in these segments, as the asset revaluation through multiple expansion has largely occurred.

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Global Trends and Risks:

Kumar expressed a constructive outlook for Indian markets, citing the country’s resilient GDP and expected growth rates. He touched upon global trends, emphasizing the potential impact of a softening U.S. economy and mild recessions in European markets. Two significant risks highlighted were geopolitical developments in the Middle East affecting regional stability and commodity prices, as well as developments in China that could influence global markets.

Axis Quant Fund Strategy:

Discussing Axis Quant Fund, Kumar clarified that the fund is not strictly cap-agnostic but rather driven by bottom-up stock selection opportunities. The fund maintains a balanced approach, with approximately 66% exposure to large caps, 18.5% to midcaps, and 14.2% to small caps. The investment philosophy centers around growth at reasonable prices (GARP). Kumar revealed specific sector preferences, such as being bullish on pharma, automobiles, and consumer discretionary, while remaining underweight on financials and IT.

Outlook on Specific Sectors:

The interview touched on the outlook for sectors like FMCG, healthcare, and power. Kumar expressed optimism for healthcare and power sectors due to fundamental reasons. However, for FMCG, he advocated for selectivity, considering the subdued volumes reported by companies in the recent earnings season.


In a rapidly changing market environment, staying informed is key to making sound investment decisions. Karthik Kumar’s insights on Axis Quant Fund and the broader market provide investors with valuable perspectives on navigating through market volatility. As always, it is advisable for investors to conduct further research and consider their financial goals before making any investment decisions.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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