'All our schemes are actively managed, not model-driven'

Model-driven vs human-led portfolios?

As of now, all our schemes are actively managed. None of them is model-driven. However, we do plan to launch a semi-passive fund soon. The proportion of fund manager-led schemes versus model-driven ones will largely depend on client preferences. That said, I expect most of our AUM (asset under management) to continue coming from fund manager-led schemes.

‘Go-anywhere’ funds like flexi-cap, ELSS tax-saver and focused funds, if managed in a disciplined manner with a sound process, can, in my view, still deliver alpha.

Post-stress test safeguards?

The equity schemes we manage operate with flexible mandates. The real challenge was felt more by large schemes focused on specific market-cap segments. Very large small- and mid-cap funds were the most impacted.

On the fixed income side, regulatory and market-driven changes have mainly affected the riskier credit rating segment of the market. We’ve never had any presence in that space.

As a result, we haven’t made any meaningful changes to the way we manage our investments.

On low-friction investing and investor churn.

There is definitely a trend towards higher churn, given how easy it has become to transact. As per my understanding, the industry-wide average holding period in equity funds is now around two years.

To discourage frequent tinkering with investments, we have introduced exit loads in our equity and hybrid funds.

Rapid-fire questions

• One AMC you admire (not yours): HDFC Mutual Fund/ DSP Mutual Fund.
• One hot trend you’re glad to have skipped for your investors: Thematic funds and NFOs in general.
• One fund manager, past or present, you would love to have on your team: Prashant Jain.
• Beyond returns, one criterion you want investors to judge your AMC on: Lower drawdowns and a simple, explainable investment process which is understood by our investors.
• If not running an AMC, what would you be doing? Being a sports fanatic, I was always fascinated by the field of sports management.

This article was originally published on October 26, 2025.