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Markets are likely to move towards normalised valuation in the days to come, believes Anand Radhakrishnan, CEO, Sundaram Mutual.
Anand feels that the major section of the market is currently trading at heightened volatility but valuations will be normalised soon. He recommends MFDs/investors to moderate their returns expectations from the equity market.
Talking about his key priorities for the company as the new CEO, Anand said that he is focussing on four key areas – delivering consistency in performance, increasing market share by getting larger share of monthly SIP inflows, strengthening relationship with distributors and expanding offerings in international products.
Sharing his decades of learnings in fund management, Anand said that extremes don’t work in the MF industry. It is not wise to follow any one style of management i.e. growth or value. In fact, a blended approach works better i.e. combining both the styles, he said.
Another important factor is PPP (Philosophy, Process And People). You should have a well-defined philosophy so that the process can be set up with clarity and experienced people get an opportunity to execute the process to deliver consistent performance, said Anand.
Anand currently sees opportunities in offering access to international markets through IFSC. He says that his fund house is looking to launch a fund that would give investors access to invest across geographies and themes.
Anand also expects some consolidation in the industry. While a lot of new players are foraying into the MF industry, mid-level players are exiting the industry.
In every bull market, a lot of new players emerge and the financial markets get a healthy share of inflows across products. However, people lose confidence during not so good market cycles and flow of money dries up. This is where the opportunities lie, he added.
