India's equity markets have seen an exciting transformation in recent years, and according to Rupesh Patel, Senior Fund Manager at Nippon India Mutual Fund, the story is far from over. Managing assets worth over ₹43,000 crore, Patel remains optimistic about the medium to long-term prospects for Indian markets, citing a blend of demographic strength, improving fiscal and monetary policies, and strong banking fundamentals.
Patel highlights that India’s demographic advantage continues to be one of the most powerful tailwinds for the economy. Combined with the improved health of both corporate and banking balance sheets, this creates a stable and fertile environment for sustained earnings growth. Fiscal support and increased capital expenditure have further bolstered confidence that Indian companies will deliver on performance in the coming quarters.
One of the key messages from Patel’s perspective is that while valuations are higher compared to earlier in the year, they are still justified when placed against the backdrop of long-term structural growth. India’s appeal to global investors stems from its high return on equity and robust growth potential, which makes it stand out among emerging markets. This long-term view helps justify higher trading multiples that often worry short-term investors.
When asked about his sector preferences, Patel says he sees major opportunities in consumer discretionary companies. These businesses are expected to benefit from demand recovery and long-term trends like rising incomes and shifting preferences towards premium products. He is also optimistic about the power sector, particularly because of the evolving energy mix and increasing focus on renewables. Financial services remain another area of interest, especially businesses that profit from the growing formalisation of savings, such as insurance companies and asset managers.
For investors looking to discover the next big multibagger, Patel offers some simple but powerful advice. He believes it is essential to stay invested with a long-term mindset. According to him, the winning formula usually includes a business with growth potential, competent management, strong governance, capital efficiency, and the right entry price. However, none of these matter unless the investor is patient enough to stay through the entire journey and allow compounding to work its magic.
On the topic of IPOs, Patel reveals that while Nippon India Mutual Fund does invest in initial public offerings, they do so very selectively. They assess IPOs based on business fundamentals and risk-reward comparisons with existing holdings. With IPO valuations often pricing in future expectations, a cautious approach helps preserve long-term returns.
Cash management is another area where Patel’s strategy differs from that of many fund managers. He avoids taking large cash positions in the fund, preferring instead to stay invested and maintain liquidity only for expected redemptions or specific opportunities. This approach underlines his belief in remaining market-participative rather than trying to time it.
He also reflects on the evolution of the mutual fund industry in India. Beyond regulatory reforms, he attributes a major part of this transformation to the growing trust that domestic investors are placing in mutual funds. He notes a five-fold increase in folio count over the past fourteen years, and more importantly, a surge in systematic investment plan (SIP) contributions. From about ₹12,000 crore in early 2022, the SIP book has grown to over ₹26,000 crore by April 2025, highlighting the steady shift in investor behavior towards disciplined investing.
When evaluating companies for inclusion in the fund, Patel focuses deeply on the quality of management. This includes analyzing past decisions, financial prudence, and related party transactions. His emphasis on governance and transparency reflects the importance of trusting the people behind the business, not just the numbers.
Lastly, he shares his stock selection principles, which are grounded in in-house research and a bottom-up approach. Rather than chasing market trends, Patel prefers to build diversified portfolios that are process-driven, valuation-conscious, and focused on long-term value creation.
In a landscape full of noise, Rupesh Patel’s measured optimism stands out. His belief in fundamentals, long-term strategy, and disciplined investing serves as a guiding light for retail investors looking to navigate the ever-changing Indian markets.
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