'Core value addition will remain fund manager-led'

Model-driven vs human-led portfolios?

Our core strategy is to add value for investors and focus on long-term wealth creation. Alpha can stem from fundamental or quantitative strategies or both.

Quantitative analysis is extensively used to assess portfolio construction risk and enhance risk-adjusted returns. While its role may expand, core value addition from equity will remain fund manager-led.

Post-stress test safeguards?

Liquidity is always of critical importance in money management. The stress tests highlight changes in liquidity over time, as market conditions evolve. This makes it essential to remain aware of such shifts and respond accordingly. These tests also enable benchmarking liquidity across industry schemes, adding further value. We factor this into portfolio construction and risk management, allowing us to run optimal portfolios that deliver risk-adjusted returns across market capitalisations.

On low-friction investing and investor churn.

Digital platforms have driven strong adoption, but also slightly higher near-term churn. Our digital-only investor base is 80 per cent Gen M and Gen Z, who value ease and instant gratification.

To reinforce long-term discipline, we’ve implemented real-time nudges across our digital platforms, suggesting alternatives like pausing SIPs or fund switches instead of redemptions. We also run personalised win-back campaigns around FOMO and YOLO, showing investors who exited the gains they missed by not staying invested.

As a result, three out of four of our investors now prefer the digital ecosystem. Voice-enabled journeys and other intuitive features have further enhanced inclusivity, engagement and investor confidence.

Rapid-fire questions

• One AMC you admire (not yours): Blackrock, Vangaurd.
• One hot trend you’re glad to have skipped for your investors: We neither believe in following trends or sectors, nor in chasing asset under management.
• One fund manager, past or present, you would love to have on your team: We don’t believe in the concept of ‘star’ fund managers. Every past and present fund manager brings a unique skillset and investment style. What matters most is having a strong risk framework within the organisation, so that all fund managers, through their own styles, can create wealth for investors.
• Beyond returns, one criterion you want investors to judge your AMC on: Stability and longevity of the leadership team.
• If not running an AMC, what would you be doing? Running a restaurant.

This article was originally published on October 25, 2025.