Value Investing May Make A Comeback
Dalal Street Investment Journal|October 26, 2020
September 2020 is the third month when we have witnessed a continuous net outflow from equity-dedicated funds. What is your view on such moderation in inflows and when can we expect equity investors to return?
Harsha Upadhyaya President and CIO (Equity), Kotak Mahindra Asset Management Company
Value Investing May Make A Comeback

The net outflow from equity funds in September 2020 was lesser than what we had witnessed in August 2020. There were a couple of new fund offers (NFOs) during September which raised fresh money from investors. This resulted in an overall slower pace of outflows as compared to the previous month. However, the trend in gross redemptions didn’t change much during the month. As economic activity improves and confidence returns to normal levels, we can expect equity flows to also normalise.

What are your thoughts on the current change in fund mandate by SEBI for multi-cap funds? What impact will this have on existing funds and investors invested in the fund?

We will consider various options to ensure managing and protecting our unit holders’ interest with full compliance of SEBI regulations and guidelines. SEBI is also currently evaluating some of the suggestions put forth by the industry body. Once clarity emerges on this front, we will choose our next course of action and communicate to our unit holders.

We have seen a trend where a lot of index funds and ETFs are getting launched. How do you look at the future of index investing?

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