'This is a good time to be an asset manager'

Model-driven vs human-led portfolios?

We’re just about to embark on our algo journey, driven by our belief in rule-based investing. Smart beta products should build meaningful track records over the next five years. In the next two, they may not form a large share of our assets, but they hold strong potential to attract new investors. Reaching even 5 per cent of folios through these products would be an achievement.

Market dynamics have shifted considerably in the past three years, especially with the new public issuances. With fresh stock ideas emerging, I see clear scope for alpha generation by active managers across market caps.

This is a good time to be an asset manager. There’s enough opportunity for active managers to beat the benchmark, while also introducing complementary passive products like the Mirae Asset Nifty MidSmallcap 400 Momentum Quality ETF, and Gold and Silver Passive FOFs, which still lack active counterparts.

Early SIF launch: Aim and strategy?

We’ve announced our SIF brand (Platinum SIF) and have SEBI approval for our Equity Long Short Fund. While the launch is pending, the goal is measured participation across market cycles.

We intend to roll out differentiated strategies across equity, debt and hybrid, aiming for better risk-adjusted returns. Over a full cycle, our SIFs are expected to perform distinctly from traditional long-only funds. As with any higher-risk strategy, investor education will be critical. We plan to partner closely with distributors and advisors to ensure investors understand both the rewards and risks involved.

On low-friction investing and investor churn.

Churn is not something you can attribute to a digital or a physical investor. It is a function of product risk. High-risk funds typically see higher churn, while core products enjoy longer holding periods.

We have been very cognizant of this. That’s why we launched riskier products like our small-cap fund only after building a strong foundation with core offerings.

Rapid-fire questions

• One AMC you admire (not yours): I have said this many times: PPFAS Mutual Fund.
• One hot trend you’re glad to have skipped for your investors: Not chasing fads.
• One fund manager, past or present, you would love to have on your team: During my job interview, when I was asked what I wanted, I said the organisation needs to retain Neelesh Surana. I am extremely happy that I now work with him; it’s been a learning experience.
• Beyond returns, one criterion you want investors to judge your AMC on: Our fiduciary role, how consistently we stand by our investors through market cycles.
• If not running an AMC, what would you be doing? Probably selling high-end audio solutions.

This article was originally published on October 24, 2025.