Raghav Iyengar, CEO, 360 One Asset believes that investors have become smarter in recent times and will continue to stay invested even during volatile market conditions. He tells Kushan Shah that while generating alpha is important, one should focus on the long-term performance. Excerpts:
The market has been going through a volatile period for some time. What is the industry doing to ensure investors continue to stay interested?
Investors have become mature and are more comfortable in staying invested during flat or bearish markets. Currently, the market reflects a relatively range-bound cycle, where returns may be muted but volatility is manageable. SIPs and SWPs can help to mitigate lump-sum timing risk by automating transactions, creating greater discipline and stability, especially for new investors. Seasoned investors often see such phases as an opportunity to gradually accumulate more units. As an industry, our responsibility is to offer simple, transparent products with clearly defined processes and robust risk-management frameworks, enabling investors to better understand potential outcomes.
Do you see underperformance of your schemes against the benchmarks in the short to medium term as an issue?
Our focus is on maintaining the investment philosophy. While generating alpha is important, the investment thesis may not always beat the benchmark in the short to medium term. I believe that alpha generation should be looked at from a long-term perspective and not measured over a short-term period which may be too short in the company and investment’s lifecycle.
How is the fund house pitching SIF schemes to investors?
SIFs are a differentiated and specialised strategy designed for discerning, well-capitalised investors who recognise that mutual funds alone may not address every portfolio need. They are complementary to mutual funds and alternatives, operating within a tightly regulated framework that ensures transparency, defined expense structures, and clear redemption norms. While traditional mutual funds typically perform well in rising markets, SIFs seek to offer flexibility across market cycles, including flat or volatile conditions, through prudent use of derivatives for risk management. With exposure limited to listed markets and a higher minimum investment of Rs 10 lakh, SIFs are positioned to meet more sophisticated portfolio requirements.
The fund house has recently commenced operations through the GIFT City. How do you see the global investment landscape and its value to domestic investors?
A global portfolio can provide a currency hedge to domestic investors and help them manage portfolio risk. While India’s growth story remains intact, a global allocation can enable the investors gain exposure to sectors, themes and multinational leaders that are underrepresented in the domestic markets.
Going forward, what are your plans?
We plan to launch more differentiated products across asset classes where we see an opportunity to add value to investors. We aim to provide rigorous due diligence, prudent risk management, and consistent adherence to our investment framework in designing and managing our strategies.