(Please note that Krishna Sanghvi is no longer working with Kotak Mutual Fund)
Krishna Sanghvi, Head-Equities at Kotak Mutual Fund shares with us his philosophy on investments, his likes and much more in this interview
What is the most exciting thing about your job?
As a fund manager, I get to understand and evaluate a wide range of companies and their future. Many of these businesses are connected to the global environment and hence one has to apply thought processes on multiple dimensions. There is also the challenge of putting a valuation which is a subjective matter many a times. This combination makes my job quite interesting and exciting.
Tell us what it feels to be responsible for managing other people’s money.
There is a very high level of trust that the people have shown in fund managers by giving them their money and that too by not really monitoring the same on a micro basis. I believe it’s a very responsible task on a fund manager to do full justice in terms of ethics and processes that are needed to be followed in managing other’s money.
Did you always want to manage money? If not a fund manager, you would have been…..
Yes, I had been aspiring to be managing money for quite some time. If not a fund manager, I would have been a credit risk manager.
Tell us about your first investment. What was it?
During my college days, there was this IPO boom in 1991-92 and based on the listing gains that others got, I decided to apply in a private placement, pre-IPO. Invested Rs. 3,000/- and the company never came out with IPO…
What role does luck play in investing?
While one cannot say that luck does not play a role in investing, it is tough to quantify the role of luck in investing. Luck does play a role in investing as investment decisions are made at times by putting thoughts/estimates on future. In this world of uncertainties where political and economic issues undergo rapid change, some of these thoughts/estimates may not play out at times as projected. However, I believe that a disciplined investment process always gets a second chance from lady luck.
What are the qualities that you feel a good Fund Manager should have?
In addition to basic financial skills, ability to imagine future and take decisions with conviction and at the same time is willing to review as time progresses.
Share with us the best advice you have ever received.
“Please maintain the consistency in investment approach even when times are tough”.
Your favorite book?
The Godfather. While Don Corleone’s character is very powerful, what I like the most is the character of his youngest son Michael, who undergoes a major transformation in his life post the changes that happen to him and his family.
How do you unwind?
Movies, music and playing with my 5 year old daughter.
Over the next 10 years, which would be the most exciting country to invest in?
I think India will remain the most exciting country over the next decade. The crux essentially lies in the demographic profile where we will see a substantial increase in the working population. Take case of a family. When more members work and contribute to income generation, the prosperity level goes up. I think India as a country will replicate this case of individual family and the country’s prosperity will increase.
Advice for budding fund managers.
India offers a tremendous opportunity to create wealth over the next 10-15 years. Markets will offer lots of new businesses and investment avenues. What is needed is the willingness to look at possibilities and stick to your own investment philosophy.
Krishna manages Kotak 50, Kotak Opportunities, Kotak Lifestyle, Kotak Tax Saver, Kotak Balance, Kotak Income Plus, Kotak Contra and Kotak Select Focus
