'AI will supercharge fund managers, not replace them'

Model-driven vs human-led portfolios?

We envision a future of synergy, not substitution. Over the coming years, all our active schemes will increasingly leverage AI—not to replace fund managers, but to assist and supercharge them. AI will drive research, risk analysis and idea generation, handling the quantitative heavy lifting so that fund managers can focus on areas where the human touch adds the most value.

Insights from factory visits or interactions with company leadership are invaluable and key determinants of alpha generation. Qualitative judgments on management integrity, corporate governance and long-term vision are a domain where human judgment will remain critical.

Your first fund and trust playbook?

Our market entry was anchored in simplicity, offering essential cornerstone products for long-term wealth creation. After acquiring Essel Mutual Fund, we launched broad-based index funds tracking the Nifty 50, Nifty Next 50, Nifty Midcap 150 and Nifty Bank. Using tech to automate fund deployment and index replication has helped maintain low tracking errors. Equally important has been our focus on designing the Navi app to make investing simple, intuitive and accessible.

Investor education is a core focus area, as it forms the bedrock of a durable and transparent relationship. An empowered investor is a better partner in wealth creation journey.

On low-friction investing and investor churn.

DIY (do-it-yourself) investing is rising, thanks to digital platforms. Inflows from digital channels show more stickiness—our equity index fund category redemptions-to-monthly gross inflows ratio is lower than the industry average, reflecting more stable flows. We also focus on helping investors stay invested during market downturns. This focus has prompted us to refine the Navi app, streamlining onboarding and reducing friction. For us, a seamless and empowering digital experience is key to building enduring investor relationships.

Rapid-fire questions

• One AMC you admire (not yours): Vanguard.
• One hot trend you’re glad to have skipped for your investors: Certain thematic products.
• One fund manager, past or would love to have on your team: Peter Lynch.
• Beyond returns, one criterion investors to judge your AMC on: Quality and customer centricity.
• If not running an AMC, what would you be doing? Probably be a historian or an archaeologist.

This article was originally published on October 25, 2025.