Meet Dinesh Balachandran, the Head of Equity at SBI Mutual Fund. He manages four schemes at the fund house.

Having the right mindset is his key learning. As market sentiments can be overwhelming, he believes the right temperament to stand against the crowd is crucial.

Unlike many fund managers that don't mind overpaying for a stock due to its growth prospects, he doesn’t compromise on valuation, which is key to the margin of safety.

He eliminates companies with questionable terminal value or corporate governance. He rather looks for strong business models that might be experiencing transient challenges.

The energy sector, a contrarian bet some months ago, has seen re-rating in many stocks. Hence, he is dealing with slim pickings with no great opportunities right now.

Balachandran suggests first-time investors to start with hybrid funds given their better risk profile & cushion against sharp volatility in equity markets.

Finding all 3– high growth, quality & attractive price– together is not possible. There is always a compromise, he says. To read why, check out his interview on the link below.