"Lack Of Investor Awareness Is The Biggest Challenge"

Even though the number of retail mutual fund investors in India has been reflecting an amazing growth curve, there are challenges that many investors face due to a lack of insights into how the mutual fund industry works. As indicated by Amitabh Mohanty, Managing Director and CEO, JM Financial Asset Management Ltd. in this interview, steps must be taken to fill the gap

- Amitabh Mohanty

Amitabh Mohanty

Managing Director and CEO, JM Financial Asset Management Ltd

Given the current global economic scenario, what are your predictions for the Indian stock market in the next 12 months? How do you foresee the impact of potential US Federal Reserve rate cuts on the Indian economy?

Rate cuts, if and when they happen, are positive for the valuation of risk assets, including emerging market equities and commodities. The Indian GDP is on a solid footing now and we are seeing announcements which indicate an impending corporate capital expenditure cycle with PSUs leading the way and private companies following suit. Stock markets will have their ups and downs but the underlying strength of our economy gives us the confidence to continue to back the India growth story.

In light of recent market volatility observed during the election result week, how does JM Financial Asset Management manage risk within its investment portfolios? Please elaborate on any changes or adjustments made to your risk management strategies recently.

While we watch and calibrate our portfolio strategies in shorter to traditional asset management models. These new entrants often offer more innovative and cost-effective solutions, attracting technology-savvy investors. Ensuring robust risk management frameworks to mitigate operational risks, including those related to cyber security, fraud and compliance is getting increasingly important.