Business Today

The Best Houses

Rajiv Bhuva        Print Edition: June 26, 2011

Here are the fund houses that have emerged winners for being good at what they do - delivering returns

For Milind Barve, Managing Director of HDFC Asset Management Company, the crisis of 2008 was a defining period. It was difficult for investors to remain invested. And a major lesson it taught was to never stray from portfolio quality.

"We are conscious of what investors want," says Barve, whose fund house did not take aggressive cash calls through the crisis. "Our fund managers moved between sectors - defensive or aggressive - depending on macro analysis." The mandate was to focus on consistency in medium-to long-term performance.

Such an approach is part of the DNA of HDFC MF. The fund bagged two group awards from Lipper - Overall Best Fund House and Best Balanced Fund House. Also, HDFC Prudence was recognised as one of the outperformers in the five- and 10-year timeframe while HDFC Balanced Fund was an outperformer in the threeand five-year period.

Volatility, which can create extreme valuations, was inevitable in the three years, but Barve claims that his team has been able to optimise the opportunities "But that does not mean we are momentum players," says Barve. Since 2006, business has been built at HDFC MF via systematic investment plans, or SIPs.

It processes almost 1.4 million equity transactions a month amounting to Rs 450 crore under SIPs. In the last five years, only schemes with mid-cap stocks and infrastructure as focus have been used to tap funds. "Lesser products give more focus to fund managers," says Barve.

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