'SIP helps investors stay disciplined amid volatility'

Model-driven vs human-led portfolios?

We see investing as a balance of discipline and judgement. Our proprietary frameworks, ScoreAlpha in equities and GIMS in fixed income, bring model-driven discipline to stock selection, risk control and portfolio construction.

A growing share of large-cap portfolios is now anchored by model-based frameworks. Meanwhile, mid- and small-cap strategies still benefit from fund manager discretion, as they often require on-ground research that no model can fully capture.

We believe this hybrid approach will endure: quantitative models provide discipline and transparency, while fund managers apply judgement where human intuition delivers alpha.

Post-stress test safeguards?

Stress testing has sharpened the industry’s focus on risk. At UTI AMC, it has strengthened our investment culture. We’ve embedded stress-testing outcomes into Investment and Risk Management Committee deliberations, which regularly evaluate liquidity, sector exposures and market-wide scenarios.

At the scheme level, this translates into clearer thresholds, enhanced disclosures and guardrails beyond regulatory norms. Portfolios are stress-tested against volatility, credit downgrades and liquidity pressures, giving fund managers a forward-looking lens and investors the assurance that their capital is managed with transparency and protection.

On low-friction investing and investor churn.

Digitalisation has made investing frictionless and strengthened long-term behaviour. SIP investors are staying committed, with little change in holding periods despite easier exits. SIP contributions touched Rs 2.89 lakh crore in FY25, growing 45 per cent year-on-year. At UTI AMC, most new SIPs are now registered digitally, aided by instant set-up, one-time mandates and paperless onboarding. SIPs help investors stay disciplined during volatility, and flows have remained resilient across cycles.

Our role has been to reinforce this discipline by making journeys seamless through goal-based investing tools and investor nudges, while continuing to educate through platforms such as UTI Swatantra.

Rapid-fire questions

• One AMC you admire (not yours): Parag Parikh AMC.
• One hot trend you’re glad to have skipped for your investors: Thematic funds.
• One fund manager, past or present, you would love to have on your team: Harsha Upadhyaya.
• Beyond returns, one criterion you want investors to judge your AMC on: Governance.
• If not running an AMC, what would you be doing? Public service.

This article was originally published on October 27, 2025.