Look at large caps, hybrids and multi-asset funds in current market: Nippon India MF CIO

For Sailesh Raj Bhan, one principle has remained constant through market cycles: don't overpay for growth. "Your starting price determines longer-term actual investing returns," emphasises the Chief Investment Officer (CIO) for Equity Investments at Nippon India Mutual Fund, drawing from his nearly two-and-a-half decades of experience. Overseeing assets worth around Rs 83,000 crore across three funds, including the five-star rated large-cap and multi-cap funds, Bhan avoids taking blind risks that might seem appealing during bull markets but fail to enhance returns over time. His focus remains on purchasing growth companies at reasonable prices. In this interview, Bhan explains his investment philosophy, how mid and small caps still carry inflated valuations and the importance of asset allocation for investors. Below is the edited transcript of our discussion. You've spent over two decades navigating the ups and downs of the equity markets. If you could go back in time, what would you tell your younger self about investing, and what would your younger self be surprised to learn about you today? That is an interesting question. My simple response is that you should embrace volatility, as it ultimately determines the type of returns you will earn. Instead of being caught on the wrong side of volatility over a market cycle, one should take advantage of it. Equities allow you to position yourself well in different market conditions and take advantage of extreme price fluctuations. Over the years, how has your investment philosophy evolved to manage large equity assets spread across diverse funds? Are there any principles you swear by that haven't changed? When you start managing money, you adjust and tune yourself to reality. I think a few core principles don't change with time, and one for us has