Anirudh Garg: Achieving 128% Returns in 2024 Through Discipline and Quant-Driven Investing
In a recent episode of The 1% Club Show on the Finance With Sharan channel, host Sharan Hegde sat down with Anirudh Garg, the founder and fund manager of INVasset PMS, a SEBI-registered portfolio management service. Garg shared insights into his quant-based investment approach that delivered an impressive 128% return in 2024, far surpassing the Nifty’s approximately 29% performance during the same period. This conversation offered valuable perspectives on wealth creation, sector opportunities, and practical advice for retail and long-term investors.
Garg’s strategy emphasizes discipline over emotion, relying on data-driven decisions rather than market hype. He targets long-term compounded annual growth rates (CAGR) of 18-28%, roughly 1.5 to 2 times the Nifty’s historical 12-14% compounding. His fund has consistently ranked among India’s top performers, with a five-year CAGR around 44% in some periods. He manages around ₹1,000 crore in total assets, split between PMS and proprietary investments.
A core principle in Garg’s philosophy is geographic focus: he invests exclusively in India and the US markets. He avoids China entirely, citing a fundamental lack of trust in its government, which he believes prevents fair contract enforcement and genuine market growth. While China’s economy has expanded, its stock market has lagged significantly since the 2008 lows—unlike India’s, which has multiplied roughly 10 times over the same timeframe due to stronger democratic institutions, favorable demographics, and merit-based systems.
Looking ahead, Garg highlighted several sectors poised for strong growth over the next three or more years, driven by structural shifts and policy tailwinds:
- Pharmaceuticals: Benefiting from the “China+1” diversification strategy, the US Biosecure Act, and India’s established strengths in generics and vaccines.
- Capex-heavy areas: Including railways, defense, infrastructure, and power, where companies trade at attractive valuations with visible order books translating into earnings.
- Stock market infrastructure: Wealth managers and asset management companies riding the wave of rising financialization.
- Fertilizers and seeds: Supported by post-election emphasis on agriculture and farmer welfare.
- New-age consumption: Fast-fashion, food, and grocery delivery platforms, fueled by demographics, improving margins, and “addictive” daily usage patterns.
He provided a sample portfolio allocation to illustrate his approach: roughly 20% in pharmaceuticals, 20% in hospitals/hotels, 20% in capex value plays, 15% in stock market infrastructure, and the balance in smaller thematic bets. The strategy focuses on relative shifts—sectors or companies gaining advantages—while maintaining diversification.
For retail investors, especially younger ones in their 20s or 30s, Garg stressed starting simple and sustainable. He recommends mutual funds through systematic investment plans (SIPs) as the foundation—no leverage, no derivatives. Young investors can afford higher risk with midcap and smallcap-oriented funds, given their long time horizons to recover from drawdowns. When selecting funds, align with a manager whose psychology and risk tolerance match your own, and review historical NAV charts for drawdown patterns.
He praised certain approaches, such as those from Parag Parikh (for balanced thinking), older HDFC funds, and innovative quant players like Quant MF. For high-net-worth individuals, PMS offerings like his aim to deliver 4-5% extra returns over good mutual funds after expenses, with a typical minimum of ₹50 lakh.
Garg underscored the transformative power of compounding, calling it the “first wonder of the world.” He illustrated with examples: ₹1 crore invested at 18% over 30 years grows to ₹19.5 crore, with the majority of gains occurring in the later years—₹5 crore in just the final two years alone. Another scenario: a ₹1 lakh monthly SIP at 24% for 30 years could yield ₹356 crore pre-inflation and taxes, potentially ₹100 crore net. He advised patience, avoiding interruptions to the “snowball,” and thinking decades ahead, much like Warren Buffett, whose massive wealth accumulated primarily after age 50.
On emerging trends, Garg expressed optimism about new-age internet companies like Zomato, Swiggy, and Zepto. These businesses benefit from strong consumer habits, margin expansion, and demographic advantages—making them resilient even amid economic slowdowns. He suggested buying on significant dips (30-35% corrections) via SIPs. Regarding artificial intelligence, he views it as ultimately job-creating: it will boost business profits, expand opportunities, and drive salary growth, despite short-term disruptions.
In rapid-fire insights, Garg revealed his first stock was Unitech (which returned 1.5x), his preferred style is growth, underrated sector is defense, key lesson from Parag Parikh is capital preservation, and his favorite book for young investors is One Up on Wall Street. He warned against value traps—buying cheap stocks without earnings visibility—and emphasized that the stock market is a costly “school” where fees come in the form of losses and stress.
Overall, Anirudh Garg’s message is clear: consistent outperformance stems from discipline, a long-term horizon, and sticking to a personalized philosophy rather than copying legends. For those starting out or refining their approach, his interview serves as a roadmap for building lasting wealth in India’s dynamic market.
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