Five tips from top PMS managers for 2025: Invest in growth sectors and proxy plays

The year 2024 has been remarkable for the markets. Despite some corrections and heightened volatility during the last few months, the Nifty 50 delivered returns of 9.53 percent, while the Sensex gained 9.25 percent for investors.

With 2025 just round the corner, top-performing Portfolio Management Services (PMS) managers share their key advice for investors: adopt a bottom-up approach for stock selection, prioritise growth-oriented sectors, and capitalise on proxy plays to unlock potential opportunities.

Amit Jeswani, founder and chief investment officer of Stallion Asset said that regardless of market capitalisation (large, mid, or small), the focus should be on businesses with strong growth potential and the ability to execute effectively. He added that investors should chase growth and back entrepreneurs who demonstrate exceptional execution in their businesses.

In a similar context, Divam Sharma, founder and fund manager of Green Portfolio Investors says that investors should refine their strategies and focus on growth-oriented sectors and proxy-plays for maximising returns. He adds that while global uncertainties might challenge large-cap stocks, mid- and small-cap firms in innovative sectors are likely to perform better.

For instance, he highlights telecom sector that is benefiting from 5G rollout, IOT, and AI. "Investment in companies supplying 5G infrastructure (rather than telecom giants) could yield significant returns," says Sharma.

Ashish Goel, Managing Director and CEO of InvestSavy PMS, is of the view that valuations have increased, making it even more important for investors to either conduct thorough research on stocks or consider investing through funds. He added that investors should avoid trying to time the market and avoid leverage.

Vijay Bharadia, Founder and CIO at Wallfort PMS believes that high-quality stocks with low price-to-earnings (P/E) ratios are particularly attractive, as they tend to exhibit lower volatility during downturns.

Bharadia likes the data center space as the increasing number of internet users in India -- over 751.5 million -- has driven the demand for data storage and processing infrastructure. "This trend offers significant growth opportunities for companies involved in the development and operation of data centers," he says.

Stallion Asset's Core Fund has given returns of 70.5 percent and Wallfort PMS' Diversified Fund has given returns of 65.8 percent in the last one year. While InvestSavy's Alpha Fund has given 59 percent, Green Portfolio's Impact ESG Fund has given 55.8 percent returns in the last one year.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.