The global pandemic and the subsequent lockdown have shown us how rapidly things can change.
While the pandemic has undoubtedly presented a host of challenges, it has also unlocked some groundbreaking opportunities and novel ways of doing things that were not part of our lexicon, even in March 2020. We had to adopt and adapt the innovative ways of doing business, in the new world.
While the world changed, L&T Mutual Fund remained steadfast in its commitment to stakeholders, partners, investors and its employees. And as promised, the AMC launched the most awaited annual event for their partners & distributors -Winner’s Circle 2020 on November 10, 2020.
As Albert Einstein once said: “In the middle of difficulty, lies opportunity”, the theme for this year’s Winner’s Circle ‘Embrace the Opportunity' succinctly describes it.
For the first time in the 7 years history of Winner’s Circle, the team has chosen to go completely online, keeping safety and health protocols in mind. The event, unlike in the past, will be spread over a few weeks and feature prominent speakers and thought leaders from all over India and abroad.
The inaugural session on Nov 10, 2020 was celebrated with legendary National Geographic photographer Dewitt Jones as he shared his extraordinary insights and inspirational moments by celebrating what is right with the world.
Kailash Kulkarni, Chief Executive – L&T Mutual Fund, the driving force behind Winner’s Circle, unveiled the event with a metaphor of a rollercoaster ride for the year gone by. He further explained how a rollercoaster ride introduces you to varied people, some manifest fear, some doubt their decision while others revel in the excitement. However, the ride must complete its cycle. Similarly, he said, he himself remains unfazed by the series of events that impact the markets - the volatility, global developments or change in the way of doing business.
He further elaborated his stand of remaining invested in the long run, by way of data points that will help investors see the big picture. Market volatility can make any investor worry but the key point to remember is that these are only short-term hiccups. From 1999 to 2020, there were close to 10 events that left its mark on the stock market; however, the markets have only given positive returns to those who believed in the long-term story. Moreover, instead of trying to predict highs and lows of the market, it is important to stay invested through a full market cycle.
Past Performance may or may not be sustained in future. PRI variant is used to calculate the returns. Returns are calculated on CAGR basis if the time period is more than 1 year and on absolute basis if the time period it is less than 1 year.
He also added that market volatility can give investors the impression that they are losing their money and hence, many investors withdraw from mutual funds when they see that the funds are not performing.
One way to minimize the risk of volatility is investing in equities through systematic investment plans (SIPs). Off late one of the biggest topics of discussion is the declining number of SIPs. However, data shows that if an investor remains invested for longer term, say from 2011- 2015, he would have gained around 17% CAGR.
SIP is meant for a long-term investor where the investment process is clinical sans sentiment that results in time-tested returns.
Past performance may or may not be sustained in future.
Moreover, people have begun appreciating the markets and since March 2018, the industry has added 50 lacs investors with the total industry folios reaching 933.07 lakh.
After discussing the industry trends, Kulkarni touched upon the performance of L&T Mutual Fund.
Despite the short term underperformance, the company is once again backing on quartile 1 and quartile 2 performance, across most categories.
Past performance may or may not be sustained in future.
Distributors have been entrusting faith in the AMC which has led to a rise in the number of folios and further expanding the distributor base.
Kulkarni concluded his presentation with a saying “The bad news is times flies; the good news is you are the pilot.” He recommended that the next time anyone thinks that time is moving way too fast, the person needs to step back and remember that he/she is the one in charge. We must take time to do the things we want and set goals for ourselves and work our way to success.
About Winner's Circle
Winner’s Circle is L&T Mutual Fund’s annual partner conclave and one of the most awaited events in the Mutual Fund industry. A leading knowledge-sharing platform, Winner’s Circle celebrates the outstanding efforts of the company’s business partners through an exclusive line up of speakers from various backgrounds. The conclave will be held from 10th Nov - 10th Dec 2020, every Tuesday and Thursday, from 4 pm- 6 pm. The next event is on Thursday, 19th Nov at 4:00 pm with Indian Business Journalist and author Mr. Tamal Bandyopadhyay.
You can register for all the speaker session here – www.lntwinnerscircle.com
