Radhika Gupta, MD and CEO, Edelweiss Mutual Fund, took to X and expressed her disappointment over a report titled – ‘Many Indian Fund Managers Aren’t Too Experienced’. She called out the “false conclusion” saying it was based on a “strange analysis”.
Commenting on Mint’s report, Gupta said that a Fund Manager‘s number of years does not matter. Giving an example, she said that if she hires a CIO who has 25 years of experience but has only managed her scheme for 3 years, then what should be more important to an investor in the given scenario?
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Elaborating further, Radhika Gupta said that the analysis is “terribly biased” for young AMCs who might have hired experienced Fund Managers but don’t have any schemes with track records.
Gupta also questioned what evidence is there to prove that having the same manager for a scheme is always better for investors. She clarified that she isn’t suggesting that the fund manager should change every year, but having 2-3 managers over a period of 25 years isn’t exactly a problem. In fact, one could argue that if the scheme has performed well under multiple managers, it highlights the strength of the AMC’s processes and “lack of key man risk”.
Gupta also highlighted that many fund managers in the industry manage short term debt funds. She said that these need to be be excluded from such an analysis. “You don’t want very experienced managers there, otherwise you get costs,” she said.
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Gupta said she believes that many of the AMCs have experienced CIOs at the top leadership who hold over 20 years of experience managing portfolios and markets, and that they also have CEOs who are experienced.
She concluded the post by saying that it is a large industry which manages tonnes of money well for many investors. “Let’s not use data to draw conclusions that scare people. Markets already give us enough drama,” Gupta said.
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