In an insightful episode of Simple Hai!, veteran finance journalist Vivek Law sat down with Mihir Vora, Chief Investment Officer of TRUST Mutual Fund, for a conversation spanning three decades of market experience. Vora shared his views on geopolitical changes, market cycles, investor behaviour and India\u2019s economic resilience.<\/p>\n\n\n\n
Vora described the recent geopolitical shifts as a game changing moment. According to him, the global order that was once dominated by the United States has become increasingly fragmented, with nations focusing more strongly on their own interests.<\/p>\n\n\n\n
He believes India is relatively well positioned because of its long standing relationships with the US, Russia, China, Japan and Europe. India\u2019s ability to maintain relationships across competing global powers could become an important advantage.<\/p>\n\n\n\n
Vora also identified the US China rivalry as one of the biggest geopolitical developments. He pointed to China\u2019s dominance in areas such as electronics, rare earths and pharmaceuticals as a major strategic concern for Western economies.<\/p>\n\n\n\n
Drawing on previous crises including the Asian financial crisis, the global financial crisis and Covid 19, Vora highlighted a recurring pattern. Governments and central banks have repeatedly intervened with monetary and fiscal support to prevent severe economic downturns.<\/p>\n\n\n\n
According to Vora, investors should remember this history when markets experience extreme panic. Policy intervention has become an important part of the modern economic toolkit, meaning severe market corrections can sometimes create opportunities for long term investors.<\/p>\n\n\n\n
Vora believes India\u2019s greatest economic strength is its consistency. Despite experiencing events such as sanctions, oil price shocks and geopolitical tensions, India has generally maintained positive economic growth.<\/p>\n\n\n\n
He pointed to several structural changes since the 2008 financial crisis. Services exports, particularly information technology, have strengthened the economy, while the relative burden of oil imports has declined.<\/p>\n\n\n\n
Growing renewable energy adoption could further reduce India\u2019s vulnerability to global energy prices. Vora believes these developments could eventually help India move towards a much stronger external balance.<\/p>\n\n\n\n
Vora sees a major opportunity in the global diversification of manufacturing away from China. Even if companies shift only a small portion of their supply chains to India, the impact could be substantial because of the enormous scale of China’s manufacturing ecosystem.<\/p>\n\n\n\n
He believes India\u2019s manufacturing capabilities could expand significantly as global companies look for alternative production locations.<\/p>\n\n\n\n
Vora identified several factors behind the foreign investor selling seen during late 2024. These included a stronger US dollar, rising US bond yields, tight liquidity conditions in India, slower government spending around elections and the attractiveness of US investments.<\/p>\n\n\n\n
However, he argued that several of these pressures were beginning to ease. Domestic investment flows remained strong, while government spending on infrastructure and defence was recovering.<\/p>\n\n\n\n
For new investors, Vora recommended starting with diversified funds rather than immediately choosing specialised strategies.<\/p>\n\n\n\n
He considers Flexi Cap and Multi Cap funds suitable starting points because professional fund managers can decide how much exposure should go towards large, mid and small cap companies.<\/p>\n\n\n\n
While small cap and thematic funds can offer higher opportunities, Vora believes they require greater knowledge and monitoring.<\/p>\n\n\n\n
Vora believes India\u2019s rapidly changing economy will continue creating new companies and industries. This gives small and mid cap businesses opportunities to grow into much larger enterprises.<\/p>\n\n\n\n
However, he stressed that investors need to understand the additional risks associated with these segments rather than simply chasing higher returns.<\/p>\n\n\n\n
Vora began his professional journey as a mechanical engineer before pursuing an MBA from IIM Lucknow. His entry into finance came through SBI Mutual Fund at a time when India\u2019s capital markets were undergoing significant changes.<\/p>\n\n\n\n
Rather than pursuing investment banking, he chose fund management because he valued the opportunity to think long term and have greater control over his time.<\/p>\n\n\n\n
For Vora, the decision was driven more by passion and lifestyle than by compensation.<\/p>\n\n\n\n
Despite building a successful career in finance, Vora said recognition and respect matter more to him than money. He considers financial success a byproduct of doing meaningful work well.<\/p>\n\n\n\n
His outlook reflects the values that shaped his career: patience, perspective, discipline and a willingness to remain grounded despite professional success.<\/p>\n\n\n\n
Vora\u2019s central message is straightforward: stay disciplined, remain invested and avoid being overwhelmed by market noise.<\/p>\n\n\n\n
For long term investors, volatility does not necessarily signal danger. With India\u2019s structural growth potential, diversified investing and patience could prove more valuable than attempting to predict every market movement.<\/p>\n","protected":false},"excerpt":{"rendered":"
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