Best multi cap mutual fund managers 2020

ET Wealth together with Morningstar India has selected and ranked India's best equity mutual fund managers, across three categories, based on their five-year risk-adjusted returns. Here are the top 5 in the multi-cap category who have created the maximum wealth for investors.These fund managers are only acutely aware of the frequent disruptions in recent years—on account of demonetisation, the introduction of GST, trade wars and more— and how these have reshaped business environment. So while the extent of the pandemic-led disruption has not been seen ever before, many had already equipped their portfolios to handle large-scale disturbances. Read on to know how the professionals have managed to put a smile on investors’ faces despite some trying times.1. Rajeev Thakkar, Parag Parikh Mutual Fund 77945923Age: 47 years Education: B.Com, Chartered Accountant, CFA Charter Holder, Grad ICWA Experience: 26 yearsParag Parikh Long Term Equity investments5-year asset weighted return: 10%Average 5-year AUM: Rs 1,294 crRisk adjusted returns: 0.389Fund managed: Parag Parikh Long Term EquityAUM (Rs cr): 4,014Annualised Returns (%)3-year: 11.305-year: 11.43How he has managed the fundThakkar’s value bent is not aligned with the traditional approach to this philosophy. He chooses to emphasise earnings visibility while overlaying it with a filter of reasonable valuations. He generously uses cash as a shield against market froth and its efficacy has come to the fore in recent times. Having large cash surplus before the market correction allowed the fund to swiftly deploy in attractive spaces in a narrow window. Beyond this, Thakkar derives strength from the flexibility in the fund’s mandate to invest anywhere— across market segments and geographies.The importance of geographical diversification has hit home in recent years, and Thakkar leans on it heavily. While acknowledging that asset prices globally are elevated in the backdrop of near-zero interest rates, he reasons that the large runway for growth makes this space compelling.QUICK TAKEWhat the market tells meThe markets in March and April of 2020 were factoring in a multi-year serious health crisis on account of Covid. The markets currently have factored in the lower mortality and higher recovery rates, the impending launch of vaccines, easy money policy and higher support from governmental fiscal deficits. Equity markets in isolation are at elevated valuation levels compared to historical levels especially given the tough economic situation. Support, however, is coming from the multi-decade lows in interest rates the world over.My fund is aligned forIn the current tough situation, many businesses may not survive the current fiscal. Our fund is aligned towards companies which have the survival capability in terms of not having excessive leverage. These companies can potentially increase market share and get better pricing on account of reduced competition in the post Covid scenario.Promising investment theme for next 3-5 years For a while now Internet and technology is reshaping almost all businesses. There are very few sectors which are immune to Internet and technology. An investment theme for the times to come is to invest in businesses which are on the right side of change and which will emerge as winners on account of the trends.Top sector bets and top stock picks 77945975Also read: Best equity mutual fund managers 2020: Ranking by ET-Wealth-Morningstar2. Neelesh Surana, Mirae Asset Global Investments 77945992Age: 51 years Education: B.E.(Mechanical), MBA (FinanceExperience: 28 yearsMirae Asset Emerging Bluechip Mirae Asset Tax Saver investments5-year asset weighted return: 11.5%Average 5-year AUM: Rs 6,016 crRisk adjusted returns: 0.386Fund managed: Mirae Asset Emerging BluechipAUM (Rs cr): 10,596Annualised Returns (%)3-year: 5.045-year: 11.58Fund managed: Mirae Asset Tax SaverAUM (Rs cr): 3,858Annualised Returns (%)3-year: 5.085-year: --How he has managed the fundMirae Asset Emerging Bluechip assumed its mandate as a large & mid-cap fund at a time the mid-cap segment was facing rough weather. He is aware of the price to be paid for mistakes in this space, and so models his portfolio accordingly. He insists on keeping higher margin of safety in this segment, where he feels the gap between winners and losers will only widen. Surana has tightened certain metrics for his portfolio but resisted the temptation to tweak the portfolio. Thorough ground-up assessment of companies continues to drive portfolio construction over sector rotation.QUICK TAKEWhat the market tells me Economy and markets are stabilising. We expect mean reversion from current low level of profit to GDP over two years. Equities being a long duration asset will benefit from low interest rates. My portfolio is aligned for We follow a two-pronged approach. First priority is to buy high quality businesses, which have now corrected. We also participate in “deep-in-value” businesses. The second bucket was attractive even before the virus issue.Top sector bets and top stock picks 779460133. Atul Bhole, DSP, Mutual Fund 77946020Age: 41 years Education: MMS (Finance), CA, B.ComExperience: 13 yearsDSP Equity investments5-year asset weighted return: 9.2%Average 5-year AUM: Rs 2,614 crRisk adjusted returns: 0.258Fund managed: DSP EquityAUM (Rs cr):3,568Annualised Returns (%)3-year: 3.395-year: 6.57How he has managed the fundAtul Bhole’s belief that a company’s management is more important than the business itself is the central pillar behind his stock picks. He pays a lot of attention to capital allocation policies and shies away from firms showing high capital dilution and capex. Bhole is also wary of conglomerates as he prefers businesses that focus on deepening market share in a few verticals rather than make inroads into multiple areas. He is comfortable paying a premium for his bets rather than making a mistake of picking a poor quality company. Bulk of his fund portfolio resides where he finds comfort in the business model; the rest is housed in companies that provide some tactical opportunity such as a sector turnaround. Unlike many others, he believes good quality banks and NBFCs will surprise market positively in the coming years.QUICK TAKEWhat the market tells me The exceptional liquidity infusion and stimulus provided during the Covid-19 crisis will continue to play a bigger role in pricing of various asset classes in the coming years. This liquidity along with negative real rates might keep physical and equity asset prices on the higher side. This will obviously be coupled with a higher degree of volatilty. My fund is aligned for Given the circumstances, a large part of the fund is positioned from the ‘what is in price’ perspective (trying to benefit where market has lot of worries). However, we believe companies will deliver much better performance. Select financials, retailing and consumer discretionary companies form part of this group.Promising investment theme for next 3-5 years We believe general as well as life insurance companies have got long leeway for growth with solid drivers in place like product innovation, penetration, market share gains, among others. We believe these companies are in a similar position where private banks were 10-15 years back.Top sector bets and top stock picks 779460294. Jinesh Gopani, Axis Mutual Fund 77946035Age: 41 years Education: B.Com, Master of Management StudiesExperience: 18 yearsAxis Long Term Equity investments5-year asset weighted return: 7.2%Average 5-year AUM: Rs 14,582 crRisk adjusted returns: 0.191Fund managed: Axis Long Term Equity AUM (Rs cr): 21,051Annualised Returns (%)3-year: 5.065-year: 7.33How he has managed the fundGopani steers the biggest tax saving fund with a modest, compact portfolio despite its burgeoning asset base. He keeps faith in secular growth stories backed by great business models and strong leadership. He feels such businesses are rarely found lacking during testing times. These continue to live up to lofty expectations without faltering and recover on their own merit from tough phases.He insists that survival matters more during crunch times, and that companies with ability to gain market share eventually come out stronger. Gopani’s focus on downside protection is evident in the fund’s superior risk-return profile. While occasionally being cash heavy has helped the fund’s return profile, it is not central to his strategy. Amid the recent market correction, he has trimmed exposure to financials and added positions in tech and pharma.QUICK TAKEWhat the market tells me We are in the midst of a new cycle. A cycle where we believe there will be a clear distinction between well managed and well-funded companies that will wrestle market share from weaker participants. We anticipate significant disruption in the aftermath of Covid. Companies that adapt to the new world order will be the next investment stories.My fund is aligned forIt is a pure bottom up strategy that we bucket into three segments. The core portfolio consists of steady compounders that can generate reasonable returns with low volatility. The alpha and emerging themes buckets consist of companies with cyclical tailwind and emerging themes with high growth potential. We have rejigged our portfolio over the last few months. The emphasis is on quality and growth.Promising investment theme for next 3-5 years Disruption will be a dominant theme for the next cycle. Incumbency has always been challenged after a major market event. The ability to adapt to the new-normal will be a test for every company in India and those that succeed will be the winners.Top sector bets and top stock picks 779460535. Harsha Upadhyaya, Kotak Mutual Fund 77946062Age: 48 years Education: B.E. (Mechanical) PGDM (Finance) & CFAExperience: 24 yearsKotak Equity Opportunities Kotak Standard Multicap Kotak Taxsaver investments5-year asset weighted return: 7%Average 5-year AUM: Rs 18,278 crRisk adjusted returns: 0.170Fund managed: Kotak Equity Opportunities AUM (Rs cr): 3,517Annualised Returns (%)3-year: 2.325-year: 6.92Fund managed: Kotak Standard Multicap AUM (Rs cr): 29,361Annualised Returns (%)3-year: 2.225-year: 7.19Fund managed: Kotak Taxsaver AUM (Rs cr): 1,203Annualised Returns (%)3-year: 1.905-year: 5.81How he has managed the fundUpadhyaya skirted the deep cut in mid and small caps of the last two years by culling exposure to this segment much before the rot set in. This helped the funds cushion the downside better. Upadhyaya has put more emphasis on companies with flexibility in cost structure, low leverage and healthy cash conversion. He has avoided focused bets. Upadhyaya doesn’t believe in timing the market through cash beyond a point as it can often catch one offguard. He has been ahead of the curve in spotting red flags—being skeptical of asset quality of NBFCs and wary of fatigue within the overplayed consumption theme helped him avoid much of the pain.QUICK TAKEWhat the market tells meOnce the economy starts to register broad based recovery after the covid crisis blows over, we can expect the broader market to outperform over the medium term.My portfolio aligned forThe current investment framework has been to look for companies that will emerge stronger once normalisation begins. The focus is on companies with low leverage, lower/ flexible cost structure and strong balance sheets across sectors, and not to chase market momentum.Top sector bets and top stock picks 77946088(Source: Mornigstar India)

from Economic Times https://ift.tt/3bymG4H
via IFTTT