Volatility is the best thing that can happen to a money manager: V Balasubramanian of Mahindra MF

Volatility is the best thing that can happen to a money manager: V Balasubramanian of Mahindra MF thumbnail
The stock market is going through a volatile phase. Do fund managers also get bothered by a choppy market, we asked V Balasubramanian, Chief Portfolio Strategist (Equity), Mahindra Mutual Fund. Balasubramnian was in Delhi to launch a new fund this week.

“Volatility helps a money manager to balance or rectify the entire portfolio. Every portfolio will have imbalances as you cannot be perfect in all the times. Volatility gives you a chance to re-position your portfolio,” says Balasubramanian. He adds that investors must understand that volatility is the best thing that can happen to a fund manager.

Mahindra Mutual fund has launched a new open ended equity scheme Mahindra Rural Bharat and Consumption Yojana on Monday. The New Fund Offer, will open on October 19 and close on November 2.

He dismissed the frequently asked question `why are you launching a new fund at these market levels’ in the same fashion. “Investors remain concerned about the markets — whether it is going up or down. They ask this question in all kinds of market,” says V Balasubramanian.

He believes that investors should always focus on valuations instead of following the big talk of timing the market. “You should instead look at whether the valuations are supportive. If our country is growing, the economy is growing, as long as our fundamentals are in place, we need not worry about investing.”

This is not the first time we have seen this sell off, says Balasubramanian. “Five years back, inflation was at around 11 per cent, current account deficit was at around 4.8 per cent and we have also seen oil prices reaching $120 per barrel in the past. We have also seen rupee depreciating from 53 to 64 in a few months in 2013. But, we have come back from there,” he says.

“We have also managed to recover from various scams, we have also seen 2008 market crash. We have recovered from massive falls. These are actually the times that judge the solidity of investors. These times provide the opportunity to participate in the economy’s growth story,” says Balasubramanian.

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