Fund management calls for high standards of integrity and sincerity, says Neelesh Surana, Head of Equity, Mirae Asset Global Investments. In an exclusive interview with Cafemutual, he talks about the challenges, learning opportunities and other interesting aspects of fund management
What is the most exciting thing about your job?
The most exciting part of my job is the constant learning as the opportunities to create wealth change over time. Also, an important challenge is the pressure of generating relatively superior performance vis-à-vis both markets and peers. The pressure of getting it right consistently is intense as well as exciting.
Tell us what it feels to be responsible for managing other people’s money.
The task to assume trusteeship of investors’ wealth and compound it over time is immensely satisfying.
Did you always want to manage money? If not a fund manager, what would you have been?
I am in this profession by choice owing to my interest in capital markets. If not in this profession, I would have probably continued with my earlier role with an engineering firm.
Tell us about your first investment. When and how did your interest in stocks/investing begin?
It started during my college days through an Initial Public Offering (IPO) during the erstwhile CCI days. Participating in a high quality IPO of HDFC was a pleasant experience although I regret not holding till date.
One learns from one’s individual experiences when it comes to investing. When I look back, I see some decisions that went right while there are some which did not turn out well. I make it a point to analyze my mistakes and ensure I do not repeat them. I have learnt a lot along the way. I regret not having realized the opportunity in IT, in the initial stages. On the positive side, taking a contrarian view on many of the PSUs in the midst of the same IT boom was rewarding as many stocks have moved by more than 20-40x over the last decade.
What are the qualities that you feel a good Fund Manager should have?
Fund management calls for intensity and thus is not a routine office job with fixed timings. In this context, it is important to have passion. In addition, given that it is about dealing with trusteeship of clients’ money, it calls for high standards of integrity and sincerity.
Share with us the best advice you have ever received.
The best would be a quote from Benjamin Graham “Investments are most intelligent when it is most business-like”. It is a simple yet powerful statement summarizing many aspects related to investing. Adhering to this simple advice and comparing valuation of listed entities just like a business owner would do, helps retain conviction, particularly during irrational markets.
What role does luck play in investing?
I don’t think that luck plays any role when it comes to investing.
If you were allowed to spend a day with someone from the world of investments or business of your choice, who would give you wisdom and perspective, who would it be? Why?
From the world of business, it would be a privilege to meet Mr. Ratan Tata. His role of giving direction to multiple businesses is extremely challenging. It would be interesting to get a perspective on how he evaluates diverse businesses and gains insights on his people oriented approach, that has taken the Tata group to the height it has reached today.
Your favorite book
“Common Stocks and Uncommon Profits” by Phil Fisher.
How do you unwind?
By watching movies. I like scripts across genres and I am more particular about directors.
What is your favorite market proverb?
It is difficult to single out one. This one by Shakespeare while not intended for markets is apt for panic situations “There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune.”
Over the next 10 years, the most exciting country to invest in would be…
India. Apart from the growth potential, there are a couple of reasons which make India attractive. Firstly, when the time frame is 10 years, one might stick to something where both positives and negatives are well understood. Secondly, as in the past, India would continue to remain an interesting bottom-up market and throw significant stock specific wealth creation opportunities.
Advice for budding fund managers.
I myself am evolving and learning! Let me reiterate what I try to do. On the technical aspect related to fund management, I try not to deviate from quality when selecting businesses. On the other aspects, just like any other profession, one needs to be in only if it is enjoyable.
