‘In the years in which the value does well, we will carry them in our stride’

Should the AMC be the maker of the schemes or should they only provide guidance to the investors, for example, by stopping the flow whenever the market is overpriced?

There are some customers who expect some kind of signal. And there are some clients who just want to use your products because they will drive whatever portfolio, transformation etc. For example, take products that have got some underlying advice, let’s say, balanced profit products, or a fund fund. (FOF) scheme. Someone coming out there is clearly looking for a product that has built-in advice. Then there are some people who are saying no, I don’t want your large-cap to become like a mid-cap, which, anyway, can’t happen now. Happen. So you should basically have products that cater to both types of investors. I don’t think you should turn down a product just because you think the valuation is high. If we find that there are cases where we think the products may be inappropriate for people, then we can’t launch them in the first place. Narrow sector funds have been a constant debate. And when it’s going well, everyone just kicks in. But no one can guide you when to leave. However you can close a fund due to capacity issues. For example, if it is too large for its target universe of stocks.

Is Axis AMC also associated with growth investment?

We do just that. Even before we launched the first fund, we had clearly begun that we want to be a high quality focused fund house and focus on growth. Basically, only 5-6% of stocks actually generate all the returns in a market.

It is no longer on a year-to-year basis. But if you assume that it takes 5 years, 10 years, 15 years, 20 years and so on, the percentage of companies actually making or making money keeps coming down.

Now, even after making that call, it’s true that there will be years when the value is good. What is this so called value, I am not getting into it. But let’s say the lower quality can do much better. We’re happy to kind of take it forward, because yes, it will happen. The other thing I think we’ve noticed is, we all have a lot longer careers than we used to. At the end of the day, if you take more risks, it may work for you for a year or two, but it really won’t last long. So we are absolutely comfortable about our style.

How should investors read about the launch of your ‘Value Fund’?

There is a belief in the market that there is something called growth and there is something called value. We don’t agree with this view because often cheap stocks are cheap for a very good reason. For us, value is ultimately about long-term value – that is, can we look at five years and say it will be worth? We basically said that we wanted to reflect our investing style from a value perspective. So you will find that even though portfolios will differ, there is some commonality in the ideas of existing quality portfolios. So, here too we are still spying on the quality, with a slight twist.

Ultimately, as a full-service in-house, it is our job to ensure that we have offerings that can work with the needs of different investor segments, as long as we are confident that we will be able to deliver them over the long term and on our own terms. Can manage in unique style.

On the hybrid side, you have recently converted one of your funds into a balanced profit.

This fund was always called Dynamic Equity Fund. Hence the philosophy of changing equity exposure in response to market conditions always existed. Now, the way it happened, it was called Dynamic Equity Fund and people didn’t understand what it was. And while in some cases, we may be the category creators here, like it or not, from our point of view, we are the followers. So we said we would change the name. So while the product’s purpose and construction remain broadly the same, we also used this opportunity to review our rebalancing strategy and models and make some changes keeping in mind the extreme market movements – which are more and more There are times.

There is some excitement in the market regarding new technologies like blockchain. And some AMCs have chosen to file for new feeders that support those themes. Is this the best way to embrace these new technologies from an investor’s point of view? And do you expect SEBI to increase the foreign limit in mutual funds?

To answer your second question first, I think SEBI understands. We are waiting for RBI and government’s decision on this.

The first question is what about things like blockchain. I think the topic is too narrow. Most people think of blockchain as a cryptocurrency to begin with, but apparently, it goes much further than that. And I think some of the people who filed for this kind of fund have already shown that.

But it usually happens that people want to do these funds because the last six months or one year has been very good. It is quite possible that the next five years will also be great. But what we would prefer is that we should group some of these techniques together into a more diverse topic. Yes, there will be some companies that will perform very well and some revenue will probably be zero. Whenever we do that, we’ll add in biotech or things around it so that it becomes a reasonably diversified area for fund managers as well. If let’s say something goes wrong with the blockchain, the money can be allocated elsewhere.