- Mutual funds AUMs up 3.7% to record high of Rs 8.47L cr, but equity funds plungePayment fiasco at NSEL: MMTC, PEC to get Rs 343 crAssets under management controlled by portfolio managers plunge 30%: SebiMutual funds AUMs jump nearly 12 pct to Rs 8.34 lakh cr in October: Crisil report
We have also started the process of recruiting offline sales executives. We believe that like insurance, the MF business also needs solicitation, and growth of the industry is possible only though personal contact and advice.
What is your advice to MF investors at this point in time?
Never keep all your eggs in one basket. Invest in different asset classes, and mutual funds should be one of them. If your risk appetite is high, invest in equities; if it is low, invest in fixed income schemes of mutual funds or in bank fixed deposits.
Could you share some highlights of your stint as CEO?
I have been CEO at LIC Nomura MF for over 18 months now. Although we entered into a joint venture with Nomura a year before I joined, we had not made much headway in forging the alliance. Forging the alliance was my first priority and I think I have succeeded in that.
As per our agreement, equity schemes were to be managed by a team from Nomura while debt and balanced schemes were to be managed by officers on deputation from LIC of India. Our AUM (assets under management) had touched a low of R5,400 crore before I took charge. We observed that investors were shying away from us due to the low rate of return, which was because of our conservative approach. Risk and returns go hand in hand. So, we slightly tweaked our investment policy to help us generate better returns. When returns are better, new investors always join in and the old ones stay. We have also recruited fund managers, research analysts and marketing heads from the open market and become more result-oriented.