'Inexperienced investors need hand-holding by advisors'

Model-driven vs Human-led portfolios?

We envision a balanced evolution where model-driven strategies coexist with fund managers—not one eclipsing the other, but working in synergy. Quantitative models are indispensable for processing vast datasets—real-time market signals, macroeconomic indicators and alternative inputs no human could process at scale. They enforce discipline, reduce emotional bias and ensure consistent execution, especially in volatile markets.

Yet fund managers bring the irreplaceable human edge: the ability to contextualise data, spot narrative shifts and apply judgment honed from years of experience.

During unexpected geopolitical events or sector disruptions, models may flag anomalies. However, it’s the fund manager who understands the ‘why’ and adjusts for qualitative risks like regulatory shifts or management quality. We believe both will thrive together—quants feeding insights to fund managers for refined decision-making.

Post-stress test safeguards?

The introduction of stress tests has been a welcome formalisation of prudent risk management, but truthfully, it hasn’t materially altered how we’ve been managing money. We’ve long internalised lessons from real-world shocks—like the 2008 subprime meltdown, where liquidity dried up overnight, or the 2020 Covid crash, which tested portfolio resilience amid unprecedented volatility. Our internal protocols already mirrored these: regular scenario-based simulations, liquidity buffers calibrated to historical drawdowns and transparent stress disclosures shared proactively with investors. Post-regulation, the impact is minimal as this simply codified what we were practising.

On low-friction investing and investor churn.

Digital investing has boosted accessibility, especially in tier-2 and 3 cities, and brought in a wave of DIY (do-it-yourself) investors. But we’ve also observed shorter average holding periods, particularly among newer retail cohorts. Churn has risen, too, as low-friction interfaces encourage impulsive decisions. That’s why we believe inexperienced investors need hand-holding by advisors.

Rapid-fire questions

• One AMC you admire (not yours): Every AMC out there.
• One hot trend you’re glad to have skipped for your investors: Micro-cap funds.
• One fund manager, past or present, you would love to have on your team: I’m truly content with the stellar team we have. They’re a dream blend of analytical rigour and market intuition.
• Beyond returns, one criterion you want investors to judge your AMC on: Trust.
• If not running an AMC, what would you be doing?: Teaching the art and science of investing to the next generation.

This article was originally published on October 24, 2025.