'Size matters, but doesn't drive performance alone'

Simple. Steady. Sharp. That’s how many would describe Chirag Setalvad. As Head of Equities at HDFC AMC, he manages four schemes. His flagship HDFC Mid-Cap Opportunities Fund is among the largest and most respected in its category, holding a five-star rating from Value Research. But his story isn’t just about AUMs and alpha. It’s about discipline, humility and a philosophy shaped early on by mentor Sanjoy Bhattacharyya. In this interview, Setalvad talks about staying grounded in bull markets, keeping things simple in a noisy world and why size alone doesn’t dictate fund performance. Here’s an edited excerpt of our interaction. You’ve often credited Sanjoy Bhattacharyya for teaching you the core principles of investing. How have those principles guided your career at HDFC AMC? From a career perspective, I attribute a lot to Sanjoy – he’s been pivotal. He introduced me to this business and is incredibly well-read, well-known and intelligent, with a fantastic passion for investing that rubbed off on me over time. He recommended the right books, which made a huge difference. I read voraciously in those days. Sanjoy emphasised the importance of long-term investing, margin of safety and independent thinking – core principles that are easy to list but hard to internalise. His passion and knowledge helped me internalise them. Importantly, he gave me a break early in my career. I started managing my first fund just two or three years into my time at HDFC when I was still wet behind the ears. He told me: Don’t be afraid of making mistakes. Don’t seek them out, but be confident. That gave me immense confidence. We used to sit with annual reports, reconciling P&L, balance sheets and cash flows, and he patiently explained these concepts when nobody else had the time. I jokingly tell him he gets the credit and the blame, depending on my performance. Can you walk us through how you evaluate a company, from the initial research to the final investment decision? How does this diff