A decade of regulatory actions has streamlined the Mutual Fund Industry and has taken conflicts largely out of the system; yet the pace of change does not slow down. Global blow outs now happen at regular intervals, regulatory change is fast based and now technology is adding to the change in the industry.
“For a decade, whenever we have congregated as a group I think the ask has always been ‘How do we improve the retail penetration and the participation and to bring savings into Financial products in this country’. That hasn’t changed in a decade.” – Chitra Ramakrishna, MD and CEO of NSE.
Every market cycle brings about some lessons and takes away for the fund managers. But somehow this time has been a little different since the year 2008 market hasn’t really gone up in a smooth fashion. With all those global linkages we have had international events in our country; it still leaves an imprint and adds to the volatility. The main aim for Mint Mutual Fund Summit 2016 was to understand ‘How the fund managers have been managing their funds in this volatility; How are they facing these challenges and whether these challenges are really beyond their control or within their control.’
“The average days of investors in most schemes are much lower than what they were five to ten years back. If you are sold by a certain set of distributors and you are sold for performance then the stay of that investor is fairly limited because s(he) is not coming into the fund for a certain thought process, but for chasing returns” – Anoop Bhaskar, Head (equities), I.D.F.C. Asset Management Co. Ltd.
“If initial thought is right the environment may not lead to the desired outcomes but if your hypothesis is right I think in the end you’ll get there; and the oil companies such as Hindustan Petroleum Corporation Limited (HPCL), are a classic example.” – Prashant Jain, Executive Director and Chief Investment Officer, HDFC Asset Management Co. Ltd.
“By mean law if you have 5 years of good performance, it is fair to assume that there may be a short term hiccup because you can’t be a 25 years consistent performer. Therefore your size becomes big, your performance is good. By law of mean inversion your performance will dip down a bit. So, all the distributors here, if they have to choose a fund, please choose a good guy who is not doing that well in the short term, because that’s the guy who will again go back to the good times.” – Santosh Das Kamath, Managing Director and Chief Investment Officer, Fixed Income India, Franklin Templeton Asset Management India Pvt. Ltd.
“We manage different kind of mandates, so there are certain mandates which would be more benchmarked, focused and taking a limited deviation for the benchmarks, there are other mandates which could be benchmark agnostic.” – Mahesh Patil, Co-Chief Investment Officer, Birla Sun Life Asset Management Co. Ltd.
“If you see the current phase there you are having underperformance. This underperformance is attributable to top down macro driven investing which is time to play out in terms of returns. We are in a phase where investors are worshipping micro investing and saying that macro investing is something that should be rejected.” – Shyam Sekhar, Founder, Ithought.
Watch the events’ webcast where experts discussed ‘Challenges for the status quo – How Fund Managers are coping with increased volatility’ at Mint Mutual Fund Summit 2016 presented by Reliance Mutual Fund which took place on 20th July in Mumbai.
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