WF: Where do you see this correction bottoming? What are you advising your clients now?

Sanjay: Short term I think the market might be range bound purely because FIIs are selling. Dollar index has been moving up, so maybe because of this sudden outflow of money from India has happened, but I don't see any going below a particular level: I think 15,000 should be the bottom level because market looks attractive to lot of people at that level. On the higher side, perhaps markets can reach 17,000 to 18,000 levels - that also depends on the budget and the geo-political situation. So, it looks like to be more or less a range bound market to me. And more of a trading market - where select stocks would do well or select themes would do well at certain times.

WF: What are you telling your clients to do now?

Sanjay: What we are telling is if someone is already invested in equity, it is better not to be too adventurous at this point of time, better to look for lower levels to make additional investments.

For clients who have not already invested in equity, I think STP would be a better option for them.

WF: Are there any sectors or themes you are bullish on at this point in time?

Sanjay: We will have to see what comes from the budget. But sectors like infrastructure should do well over a period of time.

WF: Are you recommending gold as an asset class to your clients?

Sanjay: Dollar index has hit 80 - it can go to 82 in the short term. If that happens, gold can correct back to US$ 1000 levels. I think we should invest in gold closer to the US$ 1000 levels.

WF: Within the income funds space, what are you recommending to your clients?

Sanjay: We are not advising pure debt funds - but are recommending a range of MIPs - right from 5% equity to 25% equity - depending on individual clients.

WF: What are your clients doing right now - are they nervous with the current volatility or are they comfortable?

Sanjay: First time investors who had adventured into this market when the markets were on the top, are taking their money away, saying that I got my principal back. But people who are seasoned and who understand the markets well - they are becoming more trigger minded. Previously they were always thinking on a long term basis. Now they have started thinking more on a short basis. Whenever the markets is down they look for the opportunity and whenever it goes up, they become slightly like a trader kind of mentality.

WF: In your own business, are you considering taking an NSE/BSE membership - to cater to this short term mentality of your clients?

Sanjay: No, I am purely into mutual fund advice at this point of time. I don't want to go into stocks.

WF: For mutual funds, are you considering the NSE/BSE platforms?

Sanjay: I have to be flexible enough, I have to see pros and cons and accordingly take a decision. I haven't made up my mind yet. If that's the way the business will go, I have no choice but to follow suit. So, I need to keep an open mind and see how this develops.

WF: Have you made any changes your business model post August 2009?

Sanjay: What I am seeing is that a lot of advisors are considering alternate business for themselves and everybody has started doing multiple businesses. The focus is not purely on MF.

This has resulted in numerous clients not getting properly serviced on their mutual fund investments. That has opened up an opportunity for people like us, who want to grow in this space. Previously, I was focused more on the HNI space - but now, after seeing so many retail investors not getting serviced, I am getting into the retail space as well. So, the situation post Aug 09 has really given me a growth opportunity.

WF: The removal of the NOC should be helpful in this regard, isn't it?

Sanjay : Yes, from a clients perspective if he is not getting serviced, I think it is a good thing that now he has an option of taking his portfolio elsewhere. But, what is happening as far as the channel partners are concerned in not right. Clients of banks like Citi, HSBC, ICICI Direct etc cannot get the broker code on their investments changed. I think this thing is not fair because if they can take the IFA clients but we cannot get their clients - it is not a level playing field. The SEBI circular at no point says that these channel distributors are an exception to the new rule. So, why can't their clients move their business elsewhere - just like clients of other distributors now can? I think AMFI needs to take this up on a priority and SEBI must give directions to stop this unfair practice.