{"id":20819,"date":"2023-01-20T16:01:49","date_gmt":"2023-01-20T10:31:49","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=20819"},"modified":"2023-01-20T17:07:19","modified_gmt":"2023-01-20T11:37:19","slug":"dsp-mutual-fund-2023-outlook","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/","title":{"rendered":"DSP Mutual Fund 2023 Outlook"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69e7281f6f03c\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69e7281f6f03c\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#First_off_2022_recap_interestingly_titled\" title=\"First off, 2022 recap, interestingly titled\">First off, 2022 recap, interestingly titled<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#In_India_FIIs_were_net_sellers\" title=\"In India, FIIs were net sellers ?\">In India, FIIs were net sellers ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#Positives_for_Indian_Investing\" title=\"Positives for Indian Investing\">Positives for Indian Investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#India_outperformed_relatively\" title=\"India outperformed, relatively\">India outperformed, relatively<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#Indias_Bottom-up_Drivers\" title=\"India\u2019s Bottom-up Drivers?\">India\u2019s Bottom-up Drivers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#Indias_Top-down_Drivers\" title=\"India\u2019s Top-down Drivers\">India\u2019s Top-down Drivers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#Indias_Corporate_Scorecard\" title=\"India\u2019s Corporate Scorecard\">India\u2019s Corporate Scorecard<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#Near-term_trends\" title=\"Near-term trends\">Near-term trends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#Navigating_2023\" title=\"Navigating 2023:\">Navigating 2023:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/#India_Story_is_Real\" title=\"India Story is Real\">India Story is Real<\/a><\/li><\/ul><\/nav><\/div>\n<p>Let&#8217;s look at some key highlights from <a href=\"https:\/\/kuvera.in\/amc\/dsp\">DSP Mutual Fund<\/a> annual 2023 outlook\u00a0 report .<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"First_off_2022_recap_interestingly_titled\"><\/span>First off, 2022 recap, interestingly titled<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>2022: Many decades compressed?\ufe0fin a year. We experienced &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>?Sovereign debt built up like the 1940s<\/p>\n<p>?Inflation like the 1970s<\/p>\n<p>?Policy tightening like the 1980s.<\/p>\n<p>&nbsp;<\/p>\n<p>Fed&#8217;s most severe tightening?measures in the past 60 years to control inflation.<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQGE0ugKlJ7VBw\/article-inline_image-shrink_1000_1488\/0\/1673591738905?e=1679529600&amp;v=beta&amp;t=tI3bSKvae_dfQtadJZNJLZcrbTtqYhTQGGjBYfsMa9E\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>The classic 60\/40 portfolio (US large-cap stocks \/ 40% US long-term treasury bonds) \u25b6\ufe0f 22% loss? in 2022.<\/p>\n<p>&nbsp;<\/p>\n<p>This was the 2nd largest loss on record, and the largest since 1931.<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQEGQRLUqnxqQQ\/article-inline_image-shrink_1500_2232\/0\/1673591785921?e=1679529600&amp;v=beta&amp;t=xwwUrBsTUQK1ioYSe-NbB01V18NZCLiJW6Y4t3JE5qY\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<h4><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"In_India_FIIs_were_net_sellers\"><\/span>In India, FIIs were net sellers ?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>?FIIs sold ~$30b worth of assets in H1 of 2022<\/p>\n<p>?Put in ~$10b by H2, net outflow ~$17b<\/p>\n<p>?But DIIS gave crucial support to the Indian market:<\/p>\n<p>?DIIs offset outflows, invested additional ~$34b<\/p>\n<p>?Consistent monthly flows into MFs, averaged ~$1.5 billion<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQHlqpnnWD3q2A\/article-inline_image-shrink_1500_2232\/0\/1673591835783?e=1679529600&amp;v=beta&amp;t=eCT5zq0CzIukVGcrN_oN45Z5ycXrNJEK8rVp3HExp_o\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Positives_for_Indian_Investing\"><\/span>Positives for Indian Investing<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>?Growing shift towards long-term investing + financialization of household savings<\/p>\n<p>?Increasing preference for financial assets over physical assets (eg real estate &amp; gold) helped stimulate domestic economy + drive economic growth.<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQHKrd5Pz-oC4w\/article-inline_image-shrink_1500_2232\/0\/1673591924936?e=1679529600&amp;v=beta&amp;t=lTJdVUroxnSkpLs3S25nJIlDtTbrXB7yp952BM3zYSA\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"India_outperformed_relatively\"><\/span>India outperformed, relatively<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>?MSCI India USD Index down ~8% in 2022, making one of the better-performing markets globally.<\/p>\n<p>?Outperformed the MSCI Emerging Markets index by ~ 18%<\/p>\n<p>?And the MSCI Developed Markets Index by ~ 10%<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQGh0eNER1KfDQ\/article-inline_image-shrink_1500_2232\/0\/1673591989291?e=1679529600&amp;v=beta&amp;t=GBzaOy3m0Iyse90YUn7tz2wcd-Z5w0Gqq8IkPRmB3pQ\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Indias_Bottom-up_Drivers\"><\/span>India\u2019s Bottom-up Drivers?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Healthy b\/s of the 4 pillars &#8211; corporate, household, government, banks.<\/p>\n<p>&#8211; Banks with ample liquidity<\/p>\n<p>&#8211; Corp. earnings growth strong ~65% b\/w FY20-22<\/p>\n<p>&#8211; Corporates &amp; h\/h continuously de-leveraged<\/p>\n<p>&#8211; Govt&#8217;s fiscal consolidation focus<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Indias_Top-down_Drivers\"><\/span>India\u2019s Top-down Drivers<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Strong policy action from RBI and Govt\u2019s policy initiatives:<\/p>\n<p>?\ufe0fConsistent monitoring of inflation dynamics and interest rates<\/p>\n<p>?Pro capital expenditure budget<\/p>\n<p>?PLI schemes to encourage private capex<\/p>\n<p>\u2696\ufe0fSimplified labor law codes<\/p>\n<p>?Encouraging GST &amp; direct tax collections<\/p>\n<p>?ECLGS for rural and the bottom-of-the-pyramid during pandemic<\/p>\n<p>?\ufe0fStrong hiring &amp; salary increases in the services export sector -&gt; urban demand recovery<\/p>\n<p>?India\u2019s m-cap as % of the global m-cap reached highest levels in history.<\/p>\n<p>\u23ebIndia moved up from the 9th largest economy in 2010 to the 5th largest in 2022.<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQHVRBYSKNUmcQ\/article-inline_image-shrink_1500_2232\/0\/1673592115606?e=1679529600&amp;v=beta&amp;t=rmEErHsiIdQvSK5MLV1C-NymbJv3M4_--g3zze9kPP8\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p><a target=\"_blank\" rel=\"nofollow noopener\">DSP Mutual Fund<\/a>\u00a0is optimistic on India\u2019s growth story.<\/p>\n<p>Here are the factors it believes drove, and will continue to drive this growth:<\/p>\n<p>?Reformist policies<\/p>\n<p>?Favourable demographics<\/p>\n<p>?Culture of entrepreneurship<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Indias_Corporate_Scorecard\"><\/span>India\u2019s Corporate Scorecard<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>?Revenue growth ~10% CAGR, based on\u00a0<a target=\"_blank\" rel=\"nofollow noopener\">DSP Mutual Fund<\/a>\u2019s analysis of NSE-500 cos* FY19 &#8211; FY23 (TTM)<\/p>\n<p>?EBITDA margins trending below FY19 levels<\/p>\n<p>?ROE is marginally ahead of pre-covid levels at 14% (TTM FY23).<\/p>\n<p>*(excluding Financials)<\/p>\n<p>\u2795ROE improvement in<\/p>\n<p>?IT<\/p>\n<p>?Materials (mainly Metals)<\/p>\n<p>?\ufe0fConsumer Discretionary<\/p>\n<p>?Utilities<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQE_IEscN-xkzA\/article-inline_image-shrink_1500_2232\/0\/1673593549853?e=1679529600&amp;v=beta&amp;t=finziDHxlKpKbw-WuWH3HlODjhPKeYXb3RHe3TVJyRE\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>\u2796ROE contraction in<\/p>\n<p>\u26a1Energy<\/p>\n<p>?Consumer Staples<\/p>\n<p>?Telecommunication Services<\/p>\n<p>?Industrials<\/p>\n<p>?Net debt to equity at comfortable 51% -&gt; strong balance sheet of corp India<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Near-term_trends\"><\/span>Near-term trends<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>\u2022 Margin pressure continues but relief expected as commodity prices have cooled off in recent months.<\/p>\n<p>\u2022 Urban consumption continues to be robust, while the rural economy is still hurting.<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQHoyXJ8jzWmJg\/article-inline_image-shrink_1000_1488\/0\/1673593627285?e=1679529600&amp;v=beta&amp;t=0bxX3fb_OyrUYaJA5-zbS57ahW4aQmHQXUHU89X1r_0\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>?Banks seeing strong pick up in credit growth, broad-based recovery across retail, corporate, and micro, small, and medium-sized enterprises (MSMEs).<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQGm6o6GEOtW_Q\/article-inline_image-shrink_1000_1488\/0\/1673593726357?e=1679529600&amp;v=beta&amp;t=ifc_LvuwPWgUF322i65XeG1gAe3U_By3Z8gkqfqvO4A\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQH2E_DE1AULZA\/article-inline_image-shrink_1000_1488\/0\/1673593738574?e=1679529600&amp;v=beta&amp;t=1wKeMU3N8Bl7Op6-0XgU-p7NcSthtdQBYPic5BExywM\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>?Auto<\/p>\n<p>?Cyclical recovery in PV and CV (3-yr CAGR)<\/p>\n<p>?CVs grew at 12% in 2QFY23 due to improving freight availability, government infrastructure spending, and replacement demand.<\/p>\n<p>?PVs grew by 18% due to a high order book and production ramp-up.<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQF6aLUQPhOBwA\/article-inline_image-shrink_1000_1488\/0\/1673593788112?e=1679529600&amp;v=beta&amp;t=HRnyess64k3-qscIzo3lrU2UEOilvdOWI8BogOuXVNI\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>?Cement<\/p>\n<p>?2QFY23 saw a multi-year low profitability<\/p>\n<p>?Blended EBITDA\/ton fell?50% YoY, 41% QoQ to a multi-quarter low of Rs 600<\/p>\n<p>?Volumes strong, 8.5% YoY growth (3-yr CAGR: 7%)<\/p>\n<p>?Profitability expected to recover<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQEjrImkhEn5Bg\/article-inline_image-shrink_1000_1488\/0\/1673593811577?e=1679529600&amp;v=beta&amp;t=gIcuHkYKy0Wy9dnL91Lm7NbBneyk5nTfQLeLQ1Mxroc\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>?Consumer Durables<\/p>\n<p>Volatility in quarterly growth, but saw double-digit growth (3-year CAGR) in the last 5-6 quarters<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQHXmY3Mg6V3yg\/article-inline_image-shrink_1000_1488\/0\/1673593855105?e=1679529600&amp;v=beta&amp;t=xx3dfWeOuRNzRTbNoShZ1ezZEdpieZxP57508mQIUKE\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>?IT<\/p>\n<p>?Top 10 IT companies reported better-than-expected growth with resilient order bookings<\/p>\n<p>?Hiring remained high, indicating near\/medium-term growth visibility<\/p>\n<p>\u2705Lower attrition meant EBIT margin started bottoming out<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQGXAKt5BLtH3w\/article-inline_image-shrink_1000_1488\/0\/1673593893373?e=1679529600&amp;v=beta&amp;t=Weujzl38h4pp9S7C-fgirwjrjEnQnRBgMzDSmXOcTZs\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>?Pharmaceuticals<\/p>\n<p>?Formulations market in India expanded at a healthy rate.<\/p>\n<p>?Sustained traction across chronic and acute segments + price increases of 5-7% supported the overall growth.<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQG0sCBs9o04NQ\/article-inline_image-shrink_1000_1488\/0\/1673593906699?e=1679529600&amp;v=beta&amp;t=6_ghf91rBwnJ_7GCQ_MfXzJcyuX6-_xk4tZvczFInsA\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Navigating_2023\"><\/span>Navigating 2023:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Important to consider &#8211;<\/p>\n<p>?Metals, FMCG, &amp; Consumer Durables currently trading at 1.2 &#8211; 1.6 standard deviations above their 10-year averages<\/p>\n<p>?Oil &amp; Gas, Infrastructure, Pharma &amp; Banks trading below their historical averages.<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQFAP7GF9ZoO9w\/article-inline_image-shrink_1500_2232\/0\/1673594091662?e=1679529600&amp;v=beta&amp;t=k2MBDxPr0gmWZ4jMd-cCaVd4WflQMZbRAkvz_fS8RF8\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>?2022 was challenging for the \u201cQuality\u201d factor.<\/p>\n<p>?One of its worst years since &#8217;08 in US<\/p>\n<p>?But has been one of the best-performing factors, 2nd only to \u201cMomentum\u201d since &#8217;07.<\/p>\n<p>?In the past, recovery of this factor has often been gradual.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQFpo1WFBnFvKg\/article-inline_image-shrink_1500_2232\/0\/1673594120972?e=1679529600&amp;v=beta&amp;t=u0b7EhAW-SKkwEa8P_bfw5ByDnLm8bYxaOCDPvu-c9Q\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>?In contrast, the \u201cValue\u201d and \u201cMomentum\u201d factors tend to exhibit more significant fluctuations.<\/p>\n<p>?<a target=\"_blank\" rel=\"nofollow noopener\">DSP Mutual Fund<\/a>\u00a0recommends investors be cognizant of these behaviours.<\/p>\n<p>?2 key risk factors: Interest rates + Growth<\/p>\n<p>?Central banks prioritizing inflation over growth currently<\/p>\n<p>?Signs that inflationary pressure may be decreasing<\/p>\n<p>?Growth slowdown possible -&gt; further downward revisions in the near future<\/p>\n<p>?Current multiples for Indian markets are high historically<\/p>\n<p>?Returns from these levels have been moderate in the past.<\/p>\n<p>?MSCI India Index is trading at ~21X Forward PE<\/p>\n<p>&nbsp;<\/p>\n<figure><img class=\"lazy-loaded\" src=\"https:\/\/media.licdn.com\/dms\/image\/D4D12AQHlHte8QY2dBQ\/article-inline_image-shrink_1500_2232\/0\/1673594184831?e=1679529600&amp;v=beta&amp;t=mR_R8PQX56-J16yKuUROcxnrPTULcFKM0nsu3DYMZP0\" alt=\"No alt text provided for this image\" data-media-urn=\"\" \/><\/figure>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"India_Story_is_Real\"><\/span>India Story is Real<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Structural turnaround accelerated by a number of factors:<\/p>\n<p>?De-leveraging by corporates<\/p>\n<p>?Increased capacity utilization in the manufacturing sector<\/p>\n<p>?Government investment in infrastructure<\/p>\n<p>?Well-capitalized banking system<\/p>\n<p>?No. of SIP a\/c 2x to 60m (30m in \u201819)<\/p>\n<p>?No. of MF portfolios 100m+<\/p>\n<p>?No. of demat accounts 100m+ &#8211; 50% YoY increase<\/p>\n<p>?Flows of EPFO + insurance in equity markets rising<\/p>\n<p>?Poised to be the 3rd largest economy &amp; stock market by 2030<\/p>\n<p><a target=\"_blank\" rel=\"nofollow noopener\">DSP Mutual Fund<\/a>\u00a0recommends a Balanced Approach<\/p>\n<p>?Not prudent to exit equity when valuations are high. Instead, be pragmatic.<\/p>\n<p>?Rebalance portfolios to have the appropriate mix based on your own goals and risk profile.<\/p>\n<p>?Investment discipline is critical factor for success.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Lastly, some fund house specifics.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/amc\/dsp\" target=\"_blank\" rel=\"nofollow noopener\">DSP Mutual Fund<\/a>\u00a0entered privates with its first pre-IPO transaction through alternate investments desk (offshore)<\/p>\n<p><a target=\"_blank\" rel=\"nofollow noopener\">DSP Mutual Fund<\/a>\u00a0is looking at ESG integration built on 3 pillars: Climate Risk, Diversity, and Innovation. Goal of active ownership.<\/p>\n<p>&nbsp;<\/p>\n<p>That was a round-up of\u00a0<a href=\"https:\/\/www.dspim.com\/\"><strong>DSP Mutual Fund&#8217;s 2023: It\u2019s a Relative World<\/strong><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>For more insightful outlook\u00a0 from other AMC&#8217;s report <a href=\"https:\/\/kuvera.in\/blog\/category\/kuvera-insights\/\">click here<\/a> where we have presented data from SBI Mutual Funds, ICICI Prudential, Aditya Birla Sun Life mutual fund and more.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><em>Interested in how we think about the markets?<\/em><\/p>\n<p><strong>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\">Zen And The Art Of Investing<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Watch here:<\/strong> Kuvera Insights: All about Quant Funds with experts<\/p>\n<div class=\"embed-container\">\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/RMRszAX4ZWM\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<div><\/div>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/www.youtube.com\/watch?v=R7g03UwJAT8&amp;utm_source=Blog&amp;utm_medium=Weekly+wrap+22nd+July\" target=\"_blank\" rel=\"noopener\">kuvera.in<\/a> to discover Direct Plans and <a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a> and start investing today. #MutualFundSahiHai #KuveraSabseSahiHai<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let&#8217;s look at some key highlights from DSP Mutual Fund annual 2023 outlook\u00a0 report . &nbsp; First off, 2022 recap, interestingly titled &nbsp; 2022: Many decades compressed?\ufe0fin a year. We experienced &#8211; &nbsp; ?Sovereign debt built up like the 1940s ?Inflation like the 1970s ?Policy tightening like the 1980s. &nbsp; Fed&#8217;s most severe tightening?measures in [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/dsp-mutual-fund-2023-outlook\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":20820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[328,335],"tags":[1865,1864,1863,1731],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DSP Mutual Fund 2023 Outlook<\/title>\n<meta name=\"description\" content=\"The world and Indian economy performance 2023, learn all about it, in Kuvera outlook 2023 series where we summaries all major annual reports\" \/>\n<meta name=\"robots\" content=\"index, follow, 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