Fund Manager Trail

Investment style: Focus on a bottom-up stock selection with strict risk control. Factors for equity selection: companies with sustained advantage, competent management and fair valuation — growth translated at market price— which leaves enough upside. For debt, most returns are derived out of duration management, though also looks to very strict credit process, ensuring judicious usage of credit.

Worst call: The time we lost Grasim without analysing. Although we booked profits, we could have done better had we allowed it to mature. As a fund manager, it is very important not to get swayed by the market’s day-to-day equations.

Best investment advice: Stock selection is one of my strengths. To cite an instance: Picked Hero Honda when its price was really low — about 10 per cent of the present market price. Also, I let my profits grow and do not rush to cash in by selling. A good example being Concor, which we still retain.

Investment strategy: Varies according to the period and the situation. In terms of the equity basket, Indian companies are right now at the capital expenditure cycle. Credit is on the rise, many companies are going to benefit. At present, we are overweight on petrochemicals, cement, construction, metals and software as we foresee these sectors as bullish. On the debt front, there is volatility in the near term. An investor’s best bet therefore, in the long term, is to put his money on the bond fund.

‘‘Investors should know, that so long they are strong on the reason for their choice of investments they should hold on to them. Their decisions should not vary according to the moods of the market. For instance, in May when the market went weak, investors shouldn’t have rushed to sell. Had they waited, they would have multiplied the results’’.