Back in Sep 22, Akhil had asked distributors to consider MO-AMC’s equity funds from a front-view mirror and not a rear-view lens, as he was confident that the firm had put in place all the course corrections needed for performance to bounce back. His call turned out well, with 90% of their actively managed equity funds coming back strongly on performance in 2023.
Akhil believes that the investment and risk management processes put in place will continue to ensure consistency of performance going forward too.
He is encouraged by the fact that over the last 9 months, distributors have been increasing their allocations to the fund house month-over-month. There is still in his view more for his team to do to bring in distributors who continue to have a wait-and-watch approach.
Akhil says his funds will do very well when growth outscores value, but may underperform when value outperforms. Distributors and advisors understand that this cycle of growth and value will always continue and therefore should be looking to have their set of preferred fund houses for both styles.
MO-AMC is clearly trying to position itself as the distributor’s first choice for growth oriented allocations in their client portfolios.
With India progressing well on its growth journey, Akhil sees good prospects for growth style investing and remains confident of his fund house’s ability to harness this growth potential in their fund portfolios.
His message to distributors – especially those that continue to sit on the fence regarding allocations to MO-AMC: every fund house has its cycle when its style outperforms and then eventually underperforms when the tide changes. MO-AMC’s outperformance cycle has just started – please use this cycle to deliver alpha for your clients. No point in waiting for too long and jumping in late into the cycle.