India Investment: Auto, FMCG, IT Risks – Hospitality a Buy
- Helios Mutual Fund,lead by CEO Dinshaw Irani,is recalibrating it's portfolio in response to evolving market dynamics.
- Irani explained that the fund believes the most significant disruption from evs has already impacted the two-wheeler market.
- However, the fund remains hesitant about passenger vehicles (PVs), citing ongoing demand uncertainty and an existing market overhang.
helios Mutual Fund Shifts Strategy: EVs,Hospitality,and a Cautious Outlook on Tech
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Published August 21,2025
Helios Mutual Fund,lead by CEO Dinshaw Irani,is recalibrating it’s portfolio in response to evolving market dynamics. A key focus is a growing interest in electric vehicle (EV) companies, particularly within the two-wheeler segment, while maintaining a cautious stance on the passenger vehicle market and a negative outlook for the Information Technology (IT) sector.
The EV Opportunity: Two-Wheelers Lead the Charge
Irani explained that the fund believes the most significant disruption from evs has already impacted the two-wheeler market. Incumbent internal combustion engine (ICE) manufacturers are now actively investing in EV technology, creating opportunities for growth. Helios currently holds two EV stocks and Bajaj Auto,with plans to add a fourth two-wheeler player to its portfolio in August.
However, the fund remains hesitant about passenger vehicles (PVs), citing ongoing demand uncertainty and an existing market overhang.
IT sector: A Wait-and-See Approach
Despite a recent rebound in domestic IT stocks, Helios remains pessimistic about the sector.Irani pointed to ongoing economic uncertainty in the united States,including tariff battles and business challenges,as a significant headwind. The unpredictable impact of Artificial Intelligence (AI) further contributes to the cautious outlook. He noted that despite recent guidance increases, IT companies still trade at high price-to-earnings (P/E) ratios (23-24x) compared to pre-COVID levels, when growth rates were higher.
Consumer Spending and Sector Preferences
While acknowledging the potential boost from anticipated festival demand and Goods and Services Tax (GST) rate rationalization, Helios is avoiding the FMCG sector. Irani argued that even with potential price reductions due to GST changes, the impact on consumption is likely to be limited. He believes consumers will prioritize discretionary spending, particularly in areas like fast commerce (Zepto, Zomato, Swiggy).
The fund is instead focusing on the hospitality sector, anticipating increased domestic tourism driven by consumer savings. Irani suggested that consumers are more likely to spend savings on experiences like travel rather than durable goods.