'Our buy-and-hold strategy hasn't worked well in mid-cap fund'

Vinit Sambre is a seasoned fund manager with over two decades of experience in the equity markets. He joined DSP Mutual Fund in 2007 and is now the Head of Equity, overseeing the DSP Focus Fund, DSP Midcap Fund and DSP Small Cap Fund, with a combined AUM (assets under management) of Rs 38,692 crore. Sambre is well-regarded for his expertise in identifying opportunities within the mid- and small-cap segments. However, the performance of the DSP Midcap and DSP Small Cap funds has dwindled lately. In a conversation with Value Research, Sambre addressed this underperformance, noting, "Post-Covid, the sectoral rotations have been quite quick, so we could not capture well due to our buy-and-hold approach." He also elaborated on his investment philosophy and outlook on the current market. Here is an edited transcript of the interview. As a CA (chartered accountant), you had the option to dive into auditing or taxation. What pulled you towards the equity markets? Was there a specific moment or experience that made you realise your calling? You are right in a way, and the decision to come to the equity market has worked out well. I finished my chartered accountancy in 1997. Even my father was a CA. I did my articleship with him and did auditing and taxation work. After my articleship, I wanted to explore a different field, as the traditional work had become somewhat monotonous. So, I embarked on a quest to explore something new. During the initial phase, I got an interesting opportunity to work for CRISIL in their research division on a retainership basis. Working there got me excited in the field of equity, as I learned something new every day. I was studying new companies and different sectors, which I found quite interesting intellectually. Along the way, my father was also investing in the equity markets, but his success was hindered by the reliance on 'tips' for investment decisions. Therefore, it was a challenge for me to determine what drives success in this field - tips or something else. All these factors combined prompted me to pursue equity research, which has panned out quite well for me. The Indian markets seem to be on a relentless rally, even when global cues aren't ex