From missed bets to multi-baggers: Top fund managers reveal their money moves that beat the market

India’s best portfolio managers don’t just ride bull markets — they outperform consistently by learning from their missteps, sticking to disciplined frameworks, and adapting to changing market dynamics. A detailed analysis by Morningstar highlights the strategies behind their long-term success — lessons that can be game-changing for retail investors.

1. Sankaran Naren (ICICI Prudential): Value-driven, but flexible

A committed value investor, Sankaran Naren looks for fundamentally strong stocks that are temporarily out of favour. Known for his contrarian approach and sharp timing, he’s adept at rotating sectors tactically, as seen in 2021–22 when his shift away from IT and into energy and healthcare delivered solid alpha.

His key mantra? Make fewer mistakes and get many other things right. Even when bets like Vodafone ADR didn’t work out, Naren stayed introspective, learning from the outcome while sticking to his broader thesis.

2. Neelesh Surana (Mirae Asset): Quality-first, valuation-conscious

Surana relies on bottom-up stock selection and a clear focus on businesses with strong moats, scalable models, and solid governance. His disciplined approach saw him stick with high-conviction bets like Zomato and Policybazaar despite market pessimism. His DCF-based evaluation methods paid off in 2024 when both stocks rebounded sharply.

However, his tight valuation filters meant he missed upside in public sector banks and infrastructure stocks during their rally — showing how a principled style sometimes involves trade-offs.

3. Suyash Choudhary (Bandhan MF): Macro-smart, duration master

One of the most respected names in debt investing, Choudhary combines macro awareness with cautious execution. His early positioning for a rate-cut cycle in 2023 helped Bandhan Dynamic Bond Fund outperform peers by a wide margin.

Despite some timing missteps in 2021 and 2022, he has consistently shown foresight in adjusting portfolio duration ahead of market cycles, reinforcing his status as a reliable, forward-looking fixed income manager.

4. Shobhit Mehrotra (HDFC MF): Conservative, consistent, resilient

With over three decades of experience, Mehrotra emphasizes capital preservation and disciplined credit selection. His funds steer clear of risky high-yield instruments and focus on AAA and select AA-rated bonds. While this cautious stance sometimes resulted in short-term underperformance, especially when peers took aggressive credit calls, it has protected investor capital through volatile cycles.

His ability to maintain a higher duration ahead of rate easing in 2023–24 paid off as bond yields softened and his funds returned to top-quartile performance.

Key takeaways for investors

Mistakes are part of the game: Don’t aim for perfection — aim for consistency and discipline.

Stick with your convictions: Ignore the noise and back businesses you believe in.

Quality matters: In both equity and debt, never compromise on fundamentals.

Be patient: Good ideas need time to work — don’t panic during short-term dips.

Understand risk: Choose funds (or stocks) that align with your personal risk tolerance.

What you can do now

Review your mutual fund portfolio: Are your fund managers consistent and aligned with your goals and risk appetite?

Avoid chasing recent winners: One-year returns aren’t everything — look deeper into process and philosophy.

Diversify wisely: Mix value with growth, equity with debt — just like the pros do.

Think long-term: Even the best managers underperform sometimes. Stay the course with high-quality strategies.

"The quest for flawless portfolio managers is a fantasy. Even the best investors make mistakes, underscoring the importance of adopting a long-term perspective when evaluating portfolio managers’ capabilities. It is essential to consider the frequency of misfires and whether these missteps align with the manager’s style, philosophy, and experience. The portfolio managers highlighted above possess many valuable attributes, including their emphasis on fundamentals, willingness to go against the tide, long-term focus, and measured risk-taking, all of which allow them to unearth great investment opportunities. Equally important, they maintain a candid attitude toward their errors, consistently reflecting on and learning from them, which we believe is crucial for enhancing future returns," Morningstar said in its report.