The last year has seen the industry gaining in prominence and maturity. One emerging trend with which even the regulator has expressed discomfort is that of concentration of industry AUM with a few large players. The recent steps by the regulator towards rationalisation of fund-management charges should see a part reversal of this trend.
From the perspective of product intermediation, the emerging trend of fintech seems to have made initial inroads into the mutual fund distribution space. In addition, there is a growing trend of informed investors choosing the direct route for investments, while intermediaries have sought to differentiate themselves by living up to their role as 'advisors' and helping investors navigate through the recent market volatility.
USP of investment strategy
We focus on the trinity of active management, absolute returns and unconstrained investing to generate enduring value for our clients.
Instead of limiting ourselves to any one school of thought, we have developed a toolbox of 'predictive analytics' indicators and models based on a multi-dimensional research perspective. Research has shown that optimal entry and exit points into various asset classes can be identified through the identification of bouts of extreme greed and fear in the market. We differentiate ourselves by not only being able to identify bouts of greed and fear but, more importantly, with our ability to quantify euphoria and capitulation. This helps guide us in identifying the optimal level of cash/debt allocation in the scheme. Moreover, our multi-asset, multi-manager approach ensures our decision making is free from any individual biases and the pitfalls of more concentrated investment strategies.
Impact of SEBI's reclassification
The SEBI reclassification exercise has served as an impetus for quant Mutual Fund to take a hard relook at all the legacy product offerings - Escorts Mutual Fund being one of the pioneering private-sector player, many of its offerings were decades old - and their relevance in the present context.
Becoming more investor-friendly
We have a dedicated communications team for periodically informing investors of our plans as well as providing various educational resources to help build financial awareness.
Additionally, we are moving ahead on plans to collaborate with more than 30 fintech platforms for better accessibility and information on products to investors.
This article was originally published on November 28, 2018.
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