Fund management requires monitoring

Fund management requires monitoring

I. V. Subramaniam, Director, Quantum Asset Management Coompanay, chats up with MT.

Past positions: At Quantum since 1996; he has been researching Indian and global equities.

Investment mantra: Investors should search thoroughly and continuously for value picks; they should be willing to wait long term for the value to be fully unlocked.

Top picks right now: Sectors like energy, IT, banking and finance.

Advice to small investors: Avoid direct investments if you do not have time to monitor them. Invest in mutual funds that are low cost and manage the portfolio through rigorous processes.

Worst mistake small investors make: Trying to time the market.

The one thing they must never forget: Do not lose money investing in ideas that you don’t understand. Focus hard on the cost of managing your money.Your returns depend not only on the investment gains, but also the investment costs.

Best calls over the last few months: Investing in a private sector bank which was a potential turnaround story. Staying invested in a media stock where a demerger created value.

Worst call over the last few months: Not investing enough in that bank.