Why have Mahindra Manulife's equity funds done so well? Its fund manager explains.

Building a reputation in the notoriously fickle world of mid and small caps is no mean feat, and that's what Manish Lodha has achieved. Although he has 25 years of experience and is currently presiding over 11 funds at Mahindra Manulife, including the multi-cap fund, it's his recent standout performance with the mid-cap (four-star-rated by Value Research) and small-cap funds that's made him the centre of attention. During our conversation, Lodha explained in some detail why that's the case. (We are especially intrigued, as it has become increasingly difficult for mid-cap and small-cap funds to beat their benchmarks.) In addition, the Kolkata native also shares his investment philosophy, explains why he thinks the mid- and small-cap space is "becoming more relevant for the next leg of India's economic growth", and highlights the sectors he finds most promising. Here's an edited version of our interview. What initially drew you to equity investing? Was there a specific moment or experience that ignited your passion? It goes back to my school days in Calcutta (now Kolkata). The Calcutta Stock Exchange was just a stone's throw away from my school. During the mid-90s, the stock markets were booming, and a few of my batchmates would visit the exchange after school. Calcutta was a bustling hub for stock investors, providing opportunities for both learning and earning. When the markets crashed (following the Harshad Mehta scam), I quickly learned that change is inherent in the nature of the markets, necessitating ongoing learning and research. I began to read newspapers and magazines, which sparked my passion and interest in stock investing. I found a differentiated approach when I could correlate stock movement with the company fundamentals and know more about the management. Later, while pursuing my college degree and earning my chartered accounting (CA) certification, I began investing in the markets, which marked the beginning of my journey. How would you describe your investment philosophy? What kind of stocks or market conditions get you excited and motivated? India is a growth economy by nature, and my approach to stock investments reflects this growth mindset. I believe that value and growth are two sides of the same coin; a business that has been growing for the past 10 years may present value, and vice ve