 
Prashant
Jain ANOOP
BHASKER RITESH
JAIN |
Keep It simple Stick
to basics and focus on your goals to beat a short path to superior
fund performance, says Amandeep Chopra Keep it short & simple . This is the adage subscribed to by UTI Mutual Fund’s senior vice president and fund manager Amandeep Singh Chopra. But what about all the research, analysis and metrics spewed out by researchers? “You need to stay focussed in the clutter. If required break every issue or problem into discrete parts and solve them,” says Chopra. His ability to look through a maze of information is the result of his exposure to research at the start of his career. “A research background helps you keep your arguments simple and rational instead of getting swayed by market hype,” he says. Chopra tops our Fund Manager Rankings with an outstanding rate of outperformance of over 90 per cent. For Chopra, a one time sampling co-ordinator with a fashion design firm, fund performance in the long term is the outcome of several short term ideas and actions. To bet on the right horse one needs to look at trends, instead of numbers. While the past might throw up interesting patterns it is important to identify what is more pertinent and relevant. “The past gives you an idea as to how the markets and participants behaved. But you have to keep validating your assumptions,” says Chopra. Citing the example of the tech boom and subsequent bust, he says that valuations were exorbitant and people who said that this time it was different were out of sync with fundamentals and there was a clear disconnect. “To stay the course revisit your assumptions and take continuous feedback,” says this computer science graduate from the University of Delhi. He stresses on the need for review and adapting your zfund management. Whatever the planned strategy, review the expected outcomes with actuals and keep fine-tuning the strategies/moves,” he says. Giving an example he says that there was an expectation that the Fed would raise interest rate at its August 8 (2006) meeting to control core inflation. Even though this number continued to be quite firm, the Fed did not want to feed a slow-down. “We were sitting on low duration instruments and post the decision we had to increase duration,” he says. In the next one year, Chopra believes that interest rates would be flat to declining as there might be a slowdown worldwide triggered by the US. “It is a time to be bullish on the debt markets,” he says. While events play a key role, you need to see the big picture as well. “There are four asset classes of debt, equity, commodities and forex and how the other market fares gives you a good idea of how your own asset class will fare,” he says. The biggest reason for the equity market boom after 2003 was cheap credit to corporates and investors. The debt market was minting money hand over fist before this period. There has been a role reversal since then. “Keeping an open mind to ideas will help you to correct your thoughts and bring it in line with the markets and your own research team,” says Chopra. Is there any other attribute that a fund manager should have? “A fund manager is forever an analyst, not a trader. His key role is to learn and to keep reviewing the situation and be adaptable to changes that might crop up out of the blue.” Is
he able to adapt his personal schedule to the same extent that he
is able to tackle interest rates? Chopra tries his best to do so.
His relaxation mantra is western country music, travel and exploring
new places with couple of trekking trips thrown in.
• HOME Business Standard • FUND MANAGER • October 2006 |
