Choosing from the best fund managers in India

Summary:

A fund manager is a professional who will manage the investment funds on your behalf. Their expertise, research and decision-making skills are intended to provide you with the best possible returns while managing the associated risks. This blog looks at what makes a good fund manager and then lists five of the best managers in India and why they have their edge.

A fund manager is a professional who will manage the investment funds on your behalf. The primary role is to make informed investment decisions to achieve the fund's stated objectives and maximise returns for you. In essence, a fund manager takes on the responsibility of managing your investments in a way that aligns with your financial goals and risk tolerance. Their expertise, research and decision-making skills are intended to provide you with the best possible returns while managing the associated risks.

Choosing a fund manager

Once you know the services that a fund manager will provide, you need to go about identifying the one(s) that suit(s) your requirements. The following pointers will help you find a reputable, skilled, and reliable fund manager:  

• Define your investment goals: Before looking for a fund manager, you need to be clear about your investment objectives, risk tolerance and time horizon. You want someone who aligns with your goals.
• Research fund managers: Start by researching different fund managers and investment firms. Look for well-established firms with solid track records. Use financial news websites, investment publications and online resources to gather information about fund managers' performance, strategies, and expertise.
• Track record: Look for fund managers who have consistently outperformed their benchmarks over a reasonable period. 
• Investment strategy: Understand the fund manager's investment strategy. Different managers may focus on different asset classes and geographic regions. Ensure that the manager's strategy aligns with your investment goals.
• Transparency: A good fund manager should be transparent about their investment process, fees, and performance history. Avoid managers who are not forthcoming with this information.
• Fees: Understand the fee structure of the fund or investment account managed by the fund manager. High fees can eat into your returns over time, so look for managers who offer a reasonable balance between fees and performance.
• Due diligence: Go beyond the glossy marketing materials. Investigate the manager's educational background, professional experience, and any certifications they hold. Look for any potential red flags, such as a history of regulatory violations.
• Client references: If possible, talk to current or past clients of the fund manager. They can provide insights into their experiences, the level of communication and overall satisfaction with the manager's services.
• Consistency: Consistency in performance and decision-making is important. Avoid managers who seem to change their strategies frequently or make erratic investment decisions.
• Risk management: Inquire about the manager's approach to risk management. A good fund manager should have a clear strategy for managing risks and preserving capital during market downturns.
• Communication: A good fund manager should have regular communication with their clients, keeping them informed about investment strategies, performance, and any changes in the portfolio.
• Regulatory compliance: Ensure that the fund manager is registered with relevant regulatory bodies and follows industry regulations and standards.
• Independent ratings and reviews: Look for independent ratings and reviews of the fund manager's performance and reputation that provide an objective perspective on their capabilities.

These parameters and steps should help you to narrow down on a fund manager whose strategy and objective will align with yours. With that said, here’s a list of five fund managers who are known to consistently deliver results and tick all the right boxes.

1.  Prashant Jain 

Prashant Jain is one of the most successful and respected fund managers in India. He has been associated with HDFC Mutual Fund's 'HDFC Top 100 Fund', The HDFC Index Fund, the HDFC Equity Fund and the HDFC Balanced Advantage Fund. He has the expertise to identify firms that will register growth in the long term. 

2.  Sankaran Naren

Sankaran Naren is a prominent figure in the Indian mutual fund industry, associated with ICICI Prudential Asset Management Company. His skill in value investing is what gives him an edge. Focusing on stock valuation, management and fundamentals help him identify companies that have competitive advantages and reliable business models. 

 3.  Neelesh Surana

Neelesh Surana is associated with Mirae Asset Mutual Fund as the CIO of equity. He has gained recognition and popularity for being able to identify companies that have high return on capital, use reliable business models and have an edge over other companies in their domains. 

4.  Ankit Jain

Ankit Jain is a senior fund manager at Aditya Birla Sun Life Mutual Fund, overseeing the Aditya Birla Sun Life Pure Value Fund, the Aditya Birla Sun Life Equity Fund and the Aditya Birla Sun Life Frontline Equity Fund. He gets his distinction not just from identifying companies that have solid business models, but those that are sustainable. 

5.  Nilesh Shah

Known for his expertise in the management of equity funds, Nilesh has more than 25 years of experience in mutual funds. He is the managing director of Kotak Mahindra Asset Management Co. Ltd. and is lauded for being a thought leader; he addresses conferences and seminars to share his insights, which is appreciated by those who are keen on learning from him. 

Summing up

The expertise, research and decision-making skills of these managers are intended to provide the best possible returns while managing the associated risks. However, it's important to note that not all fund managers have the same level of skill and success. On your part, thorough research and due diligence will be key when selecting a fund manager and investing in a fund. 

Disclaimer

The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.