Moving Out Of Equities Now Will Be A Huge Mistake: Quant Mutual Fund’s Sandeep Tandon To Investors

right from your childhood we have been I come from North you know the mindset is to get your house first you know so as a family we invested in few houses like I said very early part of my career I invested substantial large amount of money in real estate and it was not needed so when strategic asset was not supposed to build we build a strategic asset sort of thing okay so if I could have invested that much Quantum of money in the equity Market it could have Jed be much better results first of all is 100% with kmf only I guess uh we like to invest in our own fund and skin in the game thesis works very well for us obviously it's 100% here it did very well if I look at my average return will be more than 55% which is quite good we actually bring very unique concept of dynamic style of money management I always say we live in a very Dynamic world and hence our money man St style cannot be static so the dynamic style of money management has generated Superior risk adjusted returns for all of our investor including myself but it will be a blunder if you think Market has ried and move out from this equity and asset classes I think for most of the retail player become a very difficult exercise to come back so just remain invested from long term C mutual fund schemes have grown in their popularity due to their recent strong performance and its CEO sandep tund invests all his Equity investments in Quant mutual fund schemes it is no surprise then that suep tund portfolio has delivered huge returns in the past year but a significant portion of his Investments are outside Equity as well so let's talk to the man himself about how he manages his own portfolio hi s welcome to the latest episode of Guru portfolios we'll get straight to the point suep can you tell us what's your current asset allocation mix like so we are predominantly Equity so 60% will be Equity roughly 30% will be the real estate and remaining 10% will be around on the liquid side money market liquid funds and uh real estate is kind of largest in your overall asset allocation can you tell us how this investment has come about see obviously right from your childhood we have been I come from North you know the mindset is to get your house first you know so as a family we invested in few houses you know so these are the way investment and obviously in Bombay the property value moves up so that's the reason becomes very meaningful part of your overall assets unfortunate that Bombay is very expensive and affordability is becomes a challenge but that's the way it is within your Equity how much is uh how much is your own company shares I believe 99.9% is something you own in your own company yeah it's predominantly is with me and within the equity how much much is the the equity P that that's listed how much is large cap midcap and small cap so roughly more than 50% will be around large cap overall if if I look at the listed Equity exposure 27 should be small cap and around 23% with AIT cap that's a broad broad breakup you can take it how did your portfolio perform last year and also how much percentage of your Equity Investments is through cmf schemes so first of all is 100% with kmf only I guess uh we like to invest in a our own fund and skin in the game thesis works very well for us obviously it's 100% here it did very well if I look at my average return will be more than 55% which is quite good so I think overall con scheme itself has outperformed the market big time so I also logically a beneficiary of that suep also do you regularly rebalance your portfolio not on regular basis but closer to the year end you know that's a Time rebalance that's a time so year end sort of thing I try to assess and then take a call S uh also so what about insurance you uh have any health cover life cover or what about contingency fund uh do you plan separately a contingency fund so from a contingency fund point of view I don't keep it separately because we have more than roughly 10% in the liquid fund or money market funds which is good enough to take care of any contingency need yes I'm a strong believer and also recommend one should have a re sizable exposure so I have very reasonably good health insurance also and the life insurance substantially High large life insurance cover also we have and obviously is there for a while suep what worked for you last year obviously portfolio did well of any particular style uh or any particular approach you think particularly worked for you in the past year yes we actually bring very unique concept of dynamic style of money management I always say we live in a very Dynamic world and hence our money management St style cannot be static so the dynamic style of money management has generated Superior risk adjust returns for all of our investor including myself s uh when it comes to you know investment learnings uh any learning that you have had over the years U you know which you can share probably the viewers who are watching us can also uh you know have some insights from that see the important learning is that you know like I said very early part of my career I invested substantial large amount of money in real estate and it was not needed so when strategic asset was not supposed to build we build a strategic asset sort of thing okay so if I could have invested that much quantum money in the equity Market it could have Jed me much better results so that's Point number one and second thing I'm a very strong believer of reviewing your portfolio and I said dynamically you have to rebalance your portfolio on continuous basis because that really help us in taking a call on not only the market and it will generate positive absolute returns you know so our focus is absolute and relative both so both are equally important for us you know our viewers follow your funds quite a lot and you know Quant mutual fund schemes have grown in popularity because of its unique investment approach can you for our viewers share what's your Market Outlook from your own so we have been quite constructive on the market I have been saying that India is a decisive Bull Run in the decisive Bull Run we have seen that easy phase of Bull Run is largely over so and hence now when you're talking about a decisive bull run then the sector rotation stock rotation thesis will work very well uh we have been talking about value as a thesis right from September 2021 and this decade belongs to value and this decade belongs to India in particularly and obviously when you're talking about India centc then India Centric value companies should be a beneficiary of that you know a lot of small investors also uh you know put their money in cor mutual funds uh retail guys what's your big advice for such investors given the way markets are going right now the one big advice is that you know one has to understand that something has changed for India okay so when I say something has changed from the India perception point of view from the good liquidity point of view I think it's a one has to look for really really longterm it should not happen that you said that market has ried significantly let me move out from the equity and asset class I think that could be the biggest mistake maybe the way qu mutual fund rotate money through or through sector allocation or stock allocation sort of thing or you know we keep on rebalancing or portfol that will be a better approach one should remain invested through a mutual fund scheme because they manage your money in a more professional manner but it will be a blunder if you think Market has ried and move out from this equity and asset classes I think for most of the retail player become a very difficult exercise to come back so just remain invested from longterm again for the benefit of our viewers if you can you know Briefly summarize how qu mutual funds uh investment strategy works we have predominantly a very large macro house so everything things flows from macro to micro and then we also try to combine multi-dimensional aspect of reports you know the data which we talk about so when we talk about multi-dimensional we not only look at the valuation analytics which is the backbone we also look at the global liquidity we also look at the sentiments data the risk capita data so try to get into much more uh what you call it pragmatic data approach so it's a analytic form where we try to capture everything through number that's way the company name is known as Quant that we quantify everything so anything which affects Market whether you're talking about geopolitical volatility you talk about Earth analytics or talking about weather conditions any data point which effects Market we try to capture and then try to run a complex multivariant model so that we are able to get better Clarity in terms of what we are expecting in the market so we are a strong believer of predictive analytical thesis which we have buil we also talk about the concept of VT framework which has been very instrumental in generating Superior risk UC returns for last many years now and uh sandep what about your personal passions uh what do you follow and uh you know do you like to travel uh anything else uh that you do on the side besides you know pouring your head over so much data and investing so obviously analytics or the analysis is the first love you know but I do like to travel a lot so I travel across the globe you know listen to the music try to meet local people understand their local try to consume local food local wines and even understanding local culture it gives me a lot of perspective as a student of behavior Finance or when we human pych will play a important role it's very important to understand the people you know so ultimately we are dealing with human beings only and uh s uh what about retirement you're 54 years old you don't look uh look that old but uh you know that's the number that we are aware of but how how do you look at retirement do you have any post retirement plans do you think of retirement any retirement corus in mind so first of all I never think of a retirement I personally believe and advise everybody don't even visualize retirement you know retirement brings some amount of negative connotation you know okay I'm retirement I'm not going to do anything and that fear itself is good enough to say that no I'm going to continue to work the last minute also so I advise everybody to remain active throughout the year don't think about retirement maybe you can be retiring for a particular role which you're doing maybe you must be having your other hobbies to continue or look from the market perspective Market life is too short you know an amount of learning which is required so I like to remain very active and uh there's no retirement Corpus because that's part of my liquid fund and all my equities are predominantly a long-term fund and that is a purely if I call it if you want to call it a retirement thing yes it's a retirement thing but I don't call it that way and how do you keep fit what's the secret of your health it's a perception just general walking and stuff I'm not good in that there the one area which is missing I should spend more time on okay giving on particularly on the excise front which is relatively MV great siep thanks a lot for joining us today and sharing all those investment insights I'm sure our viewers will have a lot of takeaways from this yeah thanks a lot hope you found this conversation insightful and we'll be back with another episode pretty soon so stay tuned on [Applause] mint

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Id: 1aGQOMPRSOs

Length: 11min 3sec (663 seconds)

Published: Fri Apr 05 2024