Outlook for FY25 and key learnings from FY24 | Windmill Capital

Performance of smallcases in FY24

As markets were on an uptrend in the last fiscal year, momentum based strategy smallcases, like Value & Momentum, performed very well for us. Not to mention, smart beta strategy smallcases also displayed their versatility where Quality- Smart Beta smallcase was the pick of the lot.

Investment Strategy followed for smallcases in FY24

We have more than 60 smallcases spread across a wide range strategies such as value, dividend, growth, momentum. Therefore, our focus was and always remains on managing all these smallcases in the best way possible. We do not stick to one particular strategy in a given year. This gives our investors a broad range from which they can choose to invest in smallcases to their liking.

Market Trends & Themes which took the spotlight in FY24

While most of the sectors picked up their performance in the last fiscal year, few outliers were – Realty, Energy, Autos. We have a bunch of tracker smallcases that track most of the important market sectors and the smallcases attached to the above mentioned three sectors have had the best performance.

Sectors and Industries to track in FY25

When sectors like realty begin to do well, generally they are on an uptrend for a long time. Hence, I would assume the real estate sector to keep performing well with both public and private capex coming through. A lot of new things are seeping into sectors like energy & automotives, so it will be interesting to see the prospects of them in the coming year.

Potential shifts in sector allocation one can expect in FY25 compared to FY24

FY2024 was yet another blockbuster year for mid & small caps. Perhaps, with valuations slightly stretched for them, investors would look to shift their allocation where there is comparatively more room for growth coupled with comfortable valuations.

Various risks foreseen for the Indian markets

Well, the biggest near term risk is central elections. If there are no major surprises there, markets would definitely be happy. Apart from this, for a developing economy like ours, maintaining the momentum in our growth rates is of paramount importance.

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