A Top Fund Manager Is Bullish on Riskier India Debt on Recovery – About Your Online Magazine

Maneesh Dangi

Source: Aditya Birla Sun Life AMC Ltd.

One of India’s top fund managers is becoming optimistic about higher yielding rupee corporate bonds, based on the view that the country’s recovery will exceed economists’ consensus estimate.

Maneesh Dangi, who oversees $ 25 billion in debt assets for Aditya Birla Sun Life AMC Ltd., expects India’s economy to grow 13% in the fiscal year starting in April, compared with a median forecast of 9% for economists consulted by Bloomberg. Dangi bases his view in part on optimism about the falling unemployment rate after the blocks were eased, as well as the policy steps helping minimize insolvencies.

Aditya Birla Sun Life Corporate Bond Fund is the third best performing among Indian mutual funds focused on the company’s banknote category last year, with an 11.4% return on its regular investment plan, according to data of the Mutual Funds Association of India.

“We are going to start increasing the AA risk,” said Dangi, 44, referring to corporate bonds with AA rating credit ratings. “AA grade quality papers, where yields have not been compressed to levels prior to Covid, are offering attractive returns.”

Paula Fonseca