If you have received advice to invest in a mutual fund, then you probably have also heard advice on choosing a mutual fund based on who the fund manager is.
Because the fund manager is the sole person who makes all the key decisions relating to investments.
The fund manager is often an experienced professional who manages the fund’s day-to-day and puts his investment strategy into action. They identify market trends, study company financials and analyse economic indicators to make informed investment decisions.
A mutual fund’s performance is mainly dependent on the skill and expertise of its fund manager. There are 2 types of mutual funds: Active and Passive.
Passive fund managers aim to mirror the performance of a specific index by replicating its composition and matching its returns. If you are investing in a mutual fund that replicates the market, then choosing a great fund manager is not necessary.
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On the other hand, active fund managers actively select individual stocks to surpass the market’s overall performance. Actively managed funds require that you study the expertise of the fund manager before investing in that fund.
Here is a list of points to keep in mind when selecting a mutual fund manager:
Qualifications & Experience
Check the educational background and past work experience of fund managers before they join an Asset Management Company.
Investment Philosophy and Approach
During tough market times, fund managers should stick to their stock-picking methods. By staying consistent, they can achieve long-term success.
Track Record
See how well the manager has handled different market conditions. Look at how consistently their fund has performed and compare it to industry benchmarks and similar funds.
Timely Communication
Fund managers explain their strategies when picking stocks to make sure they match the investment goals. It’s important for you to get regular updates and clear information about what the fund owns and its strategy so you can make smart decisions.
Top Fund Managers in India
Here is a list of the top fund managers in India based on the AUM managed and the total returns earned by them:
Mr Harsha Upadhyaya- President and Chief Investment Officer
Mr. Harsha Upadhyaya brings over 23 years of extensive experience in equity research and fund management. He manages the Kotak Equity Opportunities Fund which has an AUM of Rs 25,288.03 crores. The fund provided a 10-year return of 17.49%.
Before joining Kotak, he worked at DSP BlackRock Investment Managers, Prabhudas Lilladher, SG Asia Securities, Reliance Securities, and UTI AMC.
He earned a Bachelor's degree in Mechanical Engineering from the National Institute of Technology, Surathkal, followed by a post-graduation in Finance from the Indian Institute of Management, Lucknow.
He also holds the Chartered Financial Analyst Charter.
DSP Equity Opportunities Fund managed by Rohit Singhania and Charanjit Singh
Rohit Singhania has been managing the fund since June 2015 and has 23 years of industry experience. He is a research analyst with a focus on sectors such as infrastructure, hotels, metals, sugar, automobiles, and auto ancillaries.
Charanjit Singh has been managing the fund since May 2023 and brings 19 years of experience. He holds an MBA in Finance and a B.Tech in Electronics and Communication.
Previously, he has worked in Axis Capital, B&K Securities, BNP Paribas Securities, HSBC, IDC Corp, Frost & Sullivan, and Thomas Weisel Partners.
They collectively manage Rs 14,246.23 Crores worth of AUM and their fund has earned a return of 17.44% over 10 years and 51.08% in the last year.
Rajeev Radhakrishnan- Head of Fixed Income at SBI AMC
Rajeev Radhakrishnan has been with SBI Mutual Fund since 2008 and has 24 years of experience in fund management.
Before joining SBI Mutual Fund, Rajeev worked with UTI Asset Management Company Ltd. as a Co-Fund Manager for seven years, from June 2001 to 2008. He joined SBI Mutual Fund as a fixed-income portfolio manager and now leads the Fixed Income team at the AMC.
He manages 14 schemes with a total AUM of Rs 2.35 lakh crores.
These are some of the actively managed funds by Rajeev Radhakrishnan:
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SBI Equity Hybrid Fund
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SBI Balanced Advantage Fund
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SBI Liquid Fund
Rajeev holds a B.Tech degree and a Master's in Finance from Mumbai University, and he is also a CFA charter holder.
Conclusion
Fund managers are the major players who run the mutual fund industry. They have a deep knowledge of financial markets and use effective stock selection techniques to help investors achieve their financial goals and meet the fund's objectives.
Fund managers also work to protect your investments from losses by using established strategies and extensive experience in the financial market.
Some of these strategies include continuously rebalancing the portfolio based on market conditions, analysing quarterly earnings, and monitoring key management updates to keep the fund on track to achieve its goals.
So, make sure to pick the right fund manager when investing in mutual funds.
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