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Moneycontrol Mutual Fund Summit | Only solution to remain profitable is scale, says Nippon Life's Sundeep Sikka

Opportunity in the mutual fund industry is big but the key lies in execution, said Sikka

December 14, 2022 / 11:03 PM IST
The new fund houses panel highlighted ways to overcome the challenge of differentiation and scalability.

The new fund houses panel highlighted ways to overcome the challenge of differentiation and scalability.

Only solution to remain profitable for new fund houses is to scale, said Sundeep Sikka, Executive Director & Chief Executive Officer, Nippon Life India Asset Management.

The biggest differentiation between the companies which survived and did well, was that they were able to find the niche for themselves, he added at Moneycontrol's Mutual Fund Summit.

Sikka believes it is very important for fund houses to re-evaluate their investment strategy every year.

"Let's take in Gujarat, three cities of Gujarat, we have different strategies. For those invested in Rajkot are very different from investors in Baroda to investors in Gandhinagar. Now, if you don't have different strategies for them, I think you're bound to fail," he explained.

Also Read | Adding value to investors is core to profitable growth in MF industry

The opportunity in the mutual fund industry is big but the key lies in execution, and anyone who could execute has been a condition of being successful, explained Sikka.

Meanwhile, Rajiv Shastri, Associate Director & CEO, NJ MF, said anyone who tries to make asset management business exciting is bound to fail.

If we are expected to be consistently above average, we have to be in the market. "You can't be consistently above average by taking cash calls," added G Pradeep Kumar, CEO, Union AMC.

Also Read | Moneycontrol Mutual Fund Summit | Investor behaviour will be key to alpha generation: Fund managers

Moneycontrol News
first published: Dec 14, 2022 11:03 pm