Nilesh Sathe, Director & Chief Executive Officer, LIC Nomura Mutual Fund is a post graduate in Commerce from G.S. College of Commerce & Economics, Nagpur and a Certified Associate of Indian Institute of Bankers (C.A.I.I.B).He brings a rich experience of over 3 decades in the Banking, Insurance & Mutual Fund Industry. Before joining LIC Nomura Mutual Fund AMC Ltd. as CEO, he headed the Northern Zone of LIC of India as Zonal Manager, in-charge of Marketing and Administration of seven states and one Union Territory in the North spreading from J&K to Rajasthan. He held various positions in LIC of India, as Executive Director (Mktg.), Chief (SBU/P&GS) and Sr. Divisional Manager of two prestigious Divisions of Mumbai.

LIC Nomura Mutual Fund came into existence in January 2011 as a joint venture of two financial giants, LIC Mutual fund (set up in 1989 by the Life Insurance Corporation of India) and Nomura Asset Management Strategic Investments Pvt Ltd., Japan’s leading financial conglomerate. LIC continues to be the sole sponsor of LIC Nomura Mutual Fund.

Replying to Yash Ved of IIFL, Nilesh Sathe says “Market will rally only after the Budget is passed. By next March, it should fetch 10 to 12% return.”

What is the outlook on the global and Indian economy?

Indian Economy is heading for a robust growth. Next 3 years are crucial. India will be a favored destination for FIIs. Inflow of USD will increase, capital formation will increase, employment opportunities will grow and domestic saving rate will go up.

What are your expectations from the new government?

Controlling inflation has to be the first priority. Reducing Fiscal deficit, strengthening food-grain distribution system, reducing subsidy on petroleum products, taking steps to unearth Black Money in the system, simplifying sanctions, peace with neighbouring countries, proper utilization of water resources, reducing unplanned funding and government spending, clearing projects fast, etc. etc. The faster they start, the better results they will achieve.

Do you expect the rally to continue?

Market will rally only after the Budget is passed. By next March, it should fetch 10 to 12 percent return.

Which are the sectors you are bullish?

I am bullish on Infra, Capital goods, cement, steel, metals and minerals, Power.

What is your AUM?

Our AUM stands at over Rs 10,000 Crs.

Any new funds in the pipeline?

The Infrastructure Debt Fund is filed with SEBI, Debt/G-Sec ETF is likely to be cleared soon, while Diversified Equity Fund is in the pipeline.

Any plans for inorganic growth route?

We are open to acquisitions if we get offer from existing AMCs who may like to exit, provided valuations are proper.

Do you expect to sustain same growth momentum going forward?

We have shown a growth of 47% in Average AUM last year. We shall continue to grow at same rate , may be even more than that.

What is your take on inflation?

RBI has target of 8% for Jan ‘15 and 6% for Jan ‘16. It’s quite an optimistic target, difficult but not unachievable.

What is your take on rupee and gold?

Rupee will strengthen further. I will not be surprised if it improves to Rs 55 per $. Gold imports will reduce, CAD will be under control and Gold may fall below 25,000, the extent to which the Sensex shows growth.

What is your advice to retail investors?

Retail Investors have booked profit at 24000+ level of Sensex. They should come back to equity market with higher allocation. Good days are ahead.