Best Fund Managers in India
Investing in mutual funds can be very profitable if your fund manager is skilled enough. Unlike stocks, while investing in mutual funds investors have to analyze not only about fundamentals of stocks but also the fund managers who are going to handle their hard-earned money. This approach can help investors in a number of ways.
If you don’t know how to do fundamental analysis then we have written an article on “How To Do Fundamental Analysis Of Stocks“
When Indian markets were suffering a degree of volatility and uncertainty in the year 2018, some of the highly skilled and experienced fund managers beat the index and ensured that the loss during the down market is constrained.
Keep in mind that a good fund manager is one who can cut down his client’s losses in a down or volatile market. A manager’s efficiency can be measured by comparing the index with his portfolio, the more he outperforms the better he is considered.
Let us now introduce some of the best fund managers of 2020-21.
NOTE: We have ranked these fund managers on various parameters such as Risk appetite, consistency of returns, upside and downside portfolio, outperformance concerning benchmark and category average, investment philosophy, etc.
What Does a Mutual Fund Manager Do?
Before we get to know top fund managers in India we must know that what a fund manager actually does? For investors, one of the most common reasons to invest in a mutual fund is that someone manages the portfolio of stocks, bonds, and other assets on their behalf.
It can be managed actively or passively, in both cases there is a person allocating the fund. A quality fund manager can make your money and vice versa. So, what does a fund manager do? Let’s find out.
Basically, the fund manager is in charge of what shares, bonds, or other assets the fund is going to buy with the investor’s money.
In other words, stock picking is their primary job. Focusing on fundamentals such as price-to-earnings ratios, price momentum, sales, earnings, dividends, and technical of stocks, the fund manager creates a portfolio of assets to grow money with calculated risk.
Some of the fund managers used to buy or sell stocks or bonds from the portfolio on daily basis. For larger mutual funds, the lead fund manager is often supported by a staff of analysts, traders, and others. Who monitors the markets, makes trades, and performs other duties.
Top 5 Best Mutual Fund Managers In India
1. Neelesh Surana
Chief Investment Officer, Mirae Asset Mutual Fund
Mirae Asset Mutual Fund is comparatively a new AMC, but with its impressive track record which is better than domestic mutual funds. Mirae Asset India Equity Fund and Mirae Asset Emerging Bluechip Fund are two of the flagship funds by Mirae Asset.
Neelesh Surana working as the Chief Information Officer (CIO) in Mirae asset built these funds portfolio using his parameters and understanding. Generally, he follows a growth strategy and makes investments only when a company successfully satisfies his criteria.
Mr. Surana is an expert in analyzing macroeconomics. Even using a growth strategy approach, he has managed to limit the downside of the fund during downside market times.
Mirae Asset Mutual Fund has made its place amongst powerhouses of the mutual fund industry in a very short span of time, Mr. Surana is to be credited for its consistent performance.
2. Prashant Jain
Chief Investment Officer, HDFC Mutual Fund
Prashant Jain is a part of HDFC Mutual Fund for more than 20 years. His investment decisions are strictly based on his conviction and pre-defined rules. He believes that “There is no specific strategy like Growth or Value”. The two most popular funds managed by him are HDFC Equity Fund and HDFC Top 100 Fund.
Mr. Jain is a long-term seeker. According to him, he is comfortable if the fund didn’t perform well in a short term, he is convinced it will work out in the long term.
This investment style will suit you if you are comfortable with short-term volatility for long-term performance.
3. Nilesh Shah
Managing Director, Kotak Mahindra Mutual Fund
Mr. Nilesh shah with more than 25 years of experience has been associated with multiple reputed AMCs. With leadership roles at two reputed mutual funds such as ICICI Prudential AMC, Franklin Templeton AMC before taking reigns of Kotak Mahindra Mutual Fund.
Mr. Shah is more focused on fundamentally strong companies. It’s Mr. Shah’s investment philosophy that fundamentals are the most important part of investing. According to him, fundamentally strong companies deliver better risk-adjusted returns.
He does not step back from taking aggressive positions but ensures that the risk is always calculated. The combination of Mr. Shah’s experience and the Fund manager’s expertise has worked wonders for Kotak Mahindra Mutual Fund.
4. Sankaran Naren
Chief Investment Officer, ICICI Prudential Mutual Fund
Mr. Naren has been in the market for a long time and has seen multiple market cycles over the years. He is popularly known for his counter calls, Mr. Naren manages multiple funds including popular funds like ICICI Prudential Multicap Fund, ICICI Prudential Large & Mid Cap Fund, and ICICI Prudential Balanced Advantage Fund.
Mr. Naren is a personality who is well known for his fund performance during volatile markets. During the time, when most of the funds were struggling to perform, Mr. Naren’s category has consistently outperformed because of his contra positions.
So, Let me tell you what a contra call is, Contrarian Investment basically means investments in contrast with the existing sentiment. In simple words when the market is falling you buy instead of selling.
Hence, if you are a kind of little conservative investor, where the portfolio doesn’t fall too much even during the market downturns, you should look at funds managed by Mr. Naren and invest accordingly.
5. Anoop Bhaskar
Chief Investment Officer, IDFC Mutual Fund
Mr. Anoop Bhaskar joined IDFC Mutual fund as CIO in April 2016. He is known for his expertise in the FMCG sector, which is considered a defensive bet while market downturns, He is currently managing IDFC Core Equity Fund, IDFC Sterling Value Fund, and IDFC Multi-Cap Fund.
Many fund managers have their unique investment style which they follow but according to Mr. Bhaskar in the current dynamic market, one cannot stick to a single investment style expecting it to work across all market cycles. This approach helps him stay relevant in volatile markets.
Mr. Bhaskar consistently tries to outperform the category over bullish as well as bearish market phases. Hence, if you are looking for dynamic fund management which changes based on the market performance, Anoop Bhaskar can be your solution.
Q. How much charges do I will be charged for investing in mutual funds? Ans. Tax benefits on Mutual funds keep on changing with time. According to the current laws of 2021, You don’t have to pay on Long term capital gains tax on mutual funds if you hold for more than 1 year. Also, there is no dividend distribution tax in case you investing in an equity mutual fund.
Frequently asked questions (FAQ)
Ans. Mutual Funds deduct Annual Maintenance Charges from the fund that you are investing in. So you will be charged annually. Charges are applied in accordance with SEBI guidelines and the maximum charges that are allowed in the case of Equity fund are 2.5% & in the case of debt are 2.25% in a year. Also, charges depend on the type of fund that you are investing in. Charges are higher in the case of equity funds if compared to debt funds. Also, these charges are automatically deducted, you don’t need to pay separately.
Q. Is there any Tax benefit for investing in Mutual funds?
Q. How much charges do I will be charged for investing in mutual funds?
Ans. Tax benefits on Mutual funds keep on changing with time. According to the current laws of 2021, You don’t have to pay on Long term capital gains tax on mutual funds if you hold for more than 1 year. Also, there is no dividend distribution tax in case you investing in an equity mutual fund.