A debt quality crisis is raging through the industry and actively managed funds have had a tough year, falling behind benchmark indices apart from giving poor returns. We speak to industry doyen A Balasubramanian, chief executive officer, Aditya Birla Sun Life AMC. He speaks about the performance of the AMC’s flagship schemes, the situation in debt funds, and more. Edited excerpts:
Aditya Birla Sun Life Fronline Equity has seen its performance flag over the past 12-18 months and this is also true for Aditya Birla Sun Life Tax Relief 96 over the past one year or so. How do you reassure investors about these last schemes?
The last one year has been tough for equity money managers, mainly because markets were driven by four to five stocks which have high weightage in the index. The longer term performance of both schemes has been very good. Second, the divergence between mid-cap and large-cap is quite wide and there is some bit of dip on relative performance.
