'Average SIP tenure has shortened in recent years'

Model-driven vs human-led portfolios?

We believe the optimal approach blends human expertise and model-driven intelligence. AI and quantitative models can deliver deep insights, but fund manager experience is critical, particularly in India’s long-tail market, where company nuances and liquidity constraints are difficult to model. While model-driven strategies will grow, the human edge will remain essential to deliver alpha. Striking the right balance is key to superior risk-adjusted returns.

Post-stress test safeguards?

We conduct monthly stress tests, disclose liquidity metrics and maintain stricter norms in line with SEBI’s guidelines. This has made our portfolios more resilient and transparent, ensuring that investor protection remains central to our investment process.

On low-friction investing and investor churn.

Digital investing has significantly reduced friction, but it has also led to higher churn across both lumpsum and SIP investments. We’ve observed that some new-age investors may be less patient and tend to move investments quickly based on short-term performance. This is particularly evident among recent entrants who haven’t experienced meaningful time or price corrections. A key metric reflecting this is the average SIP tenure, which has shortened over the past few years.

In response, we’ve strengthened investor education through virtual engagement with such platforms, focusing on valuation discipline and the importance of patience in investing, rather than just product conversations. We believe it’s important for investors to remain mindful of valuations, as elevated markets can test conviction during periods of volatility.

Rapid-fire questions

• One AMC you admire (not yours): I won’t highlight a single AMC. We learn from many.
• One hot trend you’re glad to have skipped for your investors: We’ve consciously avoided the recent rush to launch thematic funds irrespective of valuations. Our focus remains on bringing innovative products that balance growth potential with reasonable valuations.
• One fund manager, past or present, you would love to have on your team: Peter Lynch. His GARP (growth at a reasonable price) philosophy aligns closely with ours.
• Beyond returns, one criterion you want investors to judge your AMC on: Trust, adherence to robust processes and risk evaluation.
• If not running an AMC, what would you be doing? I’d likely return to banking.

This article was originally published on October 27, 2025.