India’s Emerging Leadership: Insights by Achin Goel, Bonanza Portfolio

In our recent PMStimes E.N.G.A.G.E session, we hosted Achin Goel, Fund Manager at Bonanza Portfolio Ltd., for a deep-dive into India’s market trajectory, sectoral tailwinds, and Bonanza’s distinctive investment DNA. The discussion offered a rare blend of on-ground market pulse, macro clarity, and pragmatic fund-management wisdom.

A 30-Year House with a Multi-Layered Edge

Achin opened with Bonanza’s evolution from a broking-first institution into a diversified wealth and asset management powerhouse. With 700+ outlets, presence across 250+ cities, and decades of experience spanning 2004, 2008, 2014, 2020 and beyond, Bonanza’s strength lies in its retail access, pan-India advisory presence, and 21+ years of PMS experience.

What sets them apart is the combination of scale + service + research depth. A 45-member team covers wealth management, research, fund management, and technology — helping them remain connected to retail sentiment and institutional flows simultaneously.

A Strong Market Foundation: Why India is Poised for Multi-Year Growth

Achin reinforced that India’s macro backdrop remains exceptionally strong.

• GDP growth: 6.5%+

• Inflation: trending near record lows

• Rural demand recovering meaningfully

• Manufacturing & PMI stable

• Capex revival underway, with 60–70% of private-sector intent already visible

Small- and mid-cap companies now contribute 38% of India’s market cap — a ratio expected to rise to 41%+ as India targets a $5.2 trillion economy by 2027. Midcaps, he stressed, sit in the “sweet spot” of high growth with manageable volatility.

Sectors with Structural Tailwinds

Achin and his team outlined several long-term opportunity pockets:

• Renewable Energy: India plans to move from 250 GW to 500 GW of renewable capacity by 2030. Solar alone may triple. The sector’s capex requirement of ₹34 lakh crore will drive multi-year growth across panels, turbines, EPC, transmission, and distribution.

• Defence: India is targeting an increase in defence allocation from 1.9% to 2.5% of GDP, along with aggressive export ambitions (from ₹24,000 crore today to ₹50,000 crore by 2029). Private-sector participation in shipbuilding, missile systems, drones, and aerospace is rising sharply.

• Emerging Tech & AI: Companies like NetWeb are benefitting from India’s push into high-performance computing and AI infrastructure.

The message was clear: India’s structural growth is intact across sectors — even if stock returns temporarily pause.

How Bonanza Builds Portfolios: Process over Prediction

Achin emphasized that stock identification is only 30–40% of fund management. The real alpha comes from:

• When to buy

• How much to buy

• When to exit

• How frequently to revalidate your thesis

Bonanza’s discipline is rooted in:

• Avoiding falling knives

• Strict stop-loss levels

• Booking losses early (a strength most investors underestimate)

• Compartmentalized research & fund management to eliminate bias

• Agility: moving into cash when required, re-deploying when conditions turn

He showcased examples like NetWeb, Quality Power, Reliance Power, and Vidhi Specialty, highlighting how timely entries, disciplined exits, and continuous revalidation created outsized returns.

Understanding Bonanza’s Strategies

Achin clarified how each PMS strategy has a distinct personality:

• Edge: Catalyst-driven special opportunities in mid & small caps.

• Aegis: Actively managed, rules-based (5F + 1T) with strong risk control.

• Growth: Large–midcap leaders with lower drawdowns.

• Value: Undervalued emerging leaders with clear multi-year triggers.

• Platinum Alpha (MF PMS): A multi-asset blend of MFs, equities, and precious metals — already delivering strong early alpha.

• AIF Category III (Long–Short): Bonanza’s proprietary long-short machine combining 25 years of derivatives expertise with PMS research — designed to protect during drawdowns.

  
  

The Takeaway: India Is in the Right Place — Investors Need Discipline

Achin concluded with a simple message:India’s long-term story is stronger than ever, but investors must practice patience and disciplined rebalancing. A 3–5 year mindset, strict exit rules, and agility during volatility are the real drivers of compounding.

His closing thought captured the spirit of the session:

“Markets reward conviction and discipline. Not predictions. Not emotions.”