- 8/2/2023
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00:00 Hello, welcome to the Mutual Fund Show. I'm Neeraj Shah. The next 20 or 25 minutes, we'll talk about
00:04 a few key aspects around AMCs on mutual funds. Last week, the announcement about Jio BlackRock
00:11 getting into a JV to launch the mutual fund business in India created quite a bit of news
00:16 and stir around it. So we'll try and talk about whether for people who are into passive investing,
00:21 what kind of options could this bring to the table, if at all? Then a clutch of NFOs are
00:26 open and we'll talk to our guests about whether any of these are suitable for an X kind of investor
00:32 or no. Our guests today, to start off the show, Suresh Sadagopan, MD and Principal Officer at
00:37 Ladder 7 Wealth Planners, Private Limited, and Harshad Chetanwala, Co-Founder of MyWealthGrowth.com.
00:44 Both of them join us right now on the show. A bit later, we'll get Anamkeet Jain, who is the
00:47 Fund Manager for Mire Asset Multicap Fund, as the NFO is on right now, to talk about what is it that
00:55 they have to say when it comes to their fund offering.
00:57 Chaman, thanks so much for taking the time out. Hope all is well.
01:01 Suresh, can I start with you? Did this announcement about an NFO like this, or rather a JV like this,
01:10 Jio and BlackRock, with tremendous expertise and hopefully good distribution as well, excite you?
01:15 Yeah, I mean, I would be slightly cautious about saying anything about this. See, the point is
01:21 there are about 43 other players in the market as it is. And I would not call any of them as a
01:28 pushover. I mean, if you really look at the pedigree of most of these players, I mean, they
01:33 have deep domain knowledge, they are from the financial services industry. And some of them have
01:38 again, global partnerships and they have done wonderfully well for more than two decades.
01:43 So if it is anything but a pushover for Jio BlackRock, I do understand Jio, I mean, BlackRock
01:52 has the expertise. I mean, they have had one more innings in the country in the past along with DSP.
01:58 So they know the terrain to at least probably some extent. And Jio, of course, I mean,
02:03 they are a juggernaut today. And they had that intention of coming into financial services. I
02:08 think this is a very good propitious partnership that way. It is expected to do a lot of things.
02:16 I mean, Jio is known for disruption. They have done that in telecom space. They have to some
02:21 extent done that in retail space and they are known as a disruptor. And it is possible that
02:27 they may do something here. Only that I mean, there are very, very seasoned players here.
02:31 And what I mean, I would say that their success is not a foregone conclusion. What they are
02:38 actually going to do on the ground, what kind of product they are going to bring to the table,
02:43 and whether it is ultimately exciting to all of us and for our clients is what will actually decide.
02:49 Decide whether they are really successful and how quick the uptake is. In that case,
02:55 it is a digital offering, I believe, digital first kind of an offering, which I think,
03:01 I mean, they are absolutely on the button as far as that is concerned, because
03:04 I mean, that is the way the entire globe is going on various fronts, whether it is payments or
03:11 whether it is retail or anywhere else, I think digital is the way to go. So they have a lot of
03:16 things going for them. But I would be cautious to say that, yeah, I mean, it is not a foregone
03:22 conclusion that success. It is certainly very exciting times for the mutual fund industry.
03:28 These people are expected to expand the cake, mutual fund cake and probably we will
03:32 get to the 100 lakh crore mark faster with Jio being there.
03:38 Yeah, well, Harshad, let me get you in on this conversation, independent of whether Jio Blackrock
03:43 is successful or not. When I saw their press release, and an opinion piece that I wrote the
03:50 subsequent day, it is evident that they are going to do a, they are digital first, they are probably
03:55 going to look at a lot of passive options. And when one looks at, for example, the statistics
04:01 that SPIVA lays out, especially in the large cap category, we know that beating the index has
04:07 become a Herculean task for funds. And now these, I mean, at least the large cap category, and it
04:12 has been going on for the last few years and not just one year. So, Harshad, my question is, if Jio
04:18 Blackrock is unequivocally saying that they are going to come out with a lot of passive digital
04:24 options, does it actually open up the sphere of low cost investing even more in most categories,
04:34 especially the large cap? And could that be beneficial to investors?
04:37 Yeah, so I think, Neeraj, let me start off with the universe first, and then I'll come to the
04:46 question that you have put forward. I think that's very important when we say that a big player like
04:50 Jio and Blackrock when they come in, there's a lot of buzz around. We have to understand that
04:55 you know, today, despite all the efforts that the industry has done, we have close to around 3.75
05:00 crore unique investors in India, which also includes NRI. So the market space is huge, there's
05:06 always the potential for a new player to come in, and then put forward their products and reach out
05:12 to a bigger audience. So it would be not in and I believe it should not stop with just Jio and
05:19 Blackrock, there's many more good players that need to come in. There are already very good
05:23 players who are doing very well for the industry. And that's we are seeing in the numbers the way
05:27 the investors acquisition is happening and the way people are investing through mutual funds.
05:31 Coming back to the question of yours, which is related to passive, we all have seen what passive
05:36 funds have been doing in last couple of years, particularly post COVID. In fact, it started off
05:42 way back in I think 2019, where the focus came on passive funds are performing better than the
05:50 active funds. Okay, there have been multiple reasons for this. Today, if in case we look at
05:56 that data again, because the markets have surged in last one quarter or more than that, we look at
06:02 that data and I would not like to split it between just and I'm not like to restrict this conversation
06:07 only up to the large cap and I'll bring in large and big cap and let's see cap category. If you
06:13 look at that, and there are close to around 140 or 150 funds, which are actively managed, and out of
06:22 which, if I put them on a horizon of a three year or five year, there are more than almost 50% of
06:28 these active funds have performed better than the passive funds or if in case I make an index fund,
06:33 a nifty 50 index fund as the benchmark. So there is always a space for a good active fund to do
06:39 better if in case they are able to generate the returns and better than the benchmark, very
06:44 frankly. But yeah, we have seen globally that passive funds have been one of the most preferred
06:51 option by the investors. Okay, and that trend has picked up in India. But we still believe that it
06:59 is better to create a blend of active and passive. Coming back to Jio, of course, they have a lot of
07:06 reach in terms of different kinds of distribution channels that they can come up with.
07:10 And another space which probably a new asset management company can focus on is probably
07:17 reaching out beyond the top cities or town. So that's where I think,
07:23 barring the reach, I think the education is very important. All those things we have done
07:28 education is the key. And in the end, whosoever come with any disruptive ideas, this is an asset
07:34 management business. Till the time the assets are managed in the right way and generate returns for
07:39 the clients. That is where the investors are going to put their money. Got it. Okay. But
07:46 here's the limited point is, I mean, at least when I wrote the piece I mentioned about whether
07:52 it's not necessarily meant to be a disrupter for the industry. That's part one, because the pie is
07:55 growing and everybody can grow together. But two, I'm particularly interested in seeing the kind of
08:00 passive options that because of BlackRock's expertise in being able to do so, brings to the
08:05 table as well. Could this be, I mean, would we be too far to go that this is the vanguard moment
08:11 for Indian AMC space, but let's wait and watch what happens there. Jem and thank you for your
08:16 initial views on this subject. But now, there's something that is, I mean, that is something that
08:21 is to look forward to. Now, to talk about something that is here and present, and that a clutch of NFOs
08:26 open. Some recent, some currently, some coming up in the future as well. Now, I'd like to talk about
08:31 some. Now, at an event that we did last week in Barwala, Naveed Punot of HDFC was there,
08:38 and he spoke about the HDFC charity fund for cancer cure. Now, it's got a few dimensions,
08:45 such kind of investments. So Resha, let me start off with you on this one. Have you given a look
08:50 at this? Is it a good investment option? And what kind of investors should or could look at a fund
09:00 like this? Actually, this is a wonderful initiative coming from HDFC. They have done this in the past
09:08 in 2011, 14 and 17. And this is the fourth iteration and they've already helped about 13,000
09:16 patients till date. So a lot of people, a lot of investors that we are in touch with,
09:22 they also want to do such kind of philanthropic activities. A lot of people have this intention
09:28 to give to good charitable causes. A lot of times where they stumble is that they are not able to
09:33 find a proper avenue to channelize that. And I think HDFC through that charity fund, which they
09:39 have come up with now in the fourth iteration, I think that is exactly what they are trying to do.
09:43 And they are giving an avenue for a lot of people to participate and in helping our other country
09:49 countrymen in a useful manner. So previously they have raised about 226 crores and it has,
09:57 like I said, it has gone to about 13,000 people. So this is a wonderful initiative. In fact,
10:03 I would go on to say that they are doing this for cancer care. There are lots of areas which,
10:09 I mean, where people are suffering and where people do not have the money, especially people
10:14 below a certain threshold. Probably they can look at those initiatives in healthcare also.
10:20 They can look at education, elderly care and things like that. I think this is the need of
10:23 the hour. I'm seeing only HDFC currently doing that. If more and more AMCs come out with these
10:31 kind of initiatives, it'll be good and investors' money can be channeled back to the society at
10:38 large. Now, coming to the question which you asked me, whether this is a good investment option,
10:44 it is not really an investment option per se. I mean, if you consider maybe 2 or 2.5% return as,
10:50 I mean, sufficient return, only then it is a good investment option. See, what exactly they are
10:56 proposing is that 50 to 75% of the so-called dividend, which they are going to get or IDCW
11:03 option, which they are going to get, is going to be channelized to that fund, I mean, that
11:09 Indian Cancer Society. And they will be in turn distributing that money. So, this is a social
11:17 impact project and people who are donating here, they will also get that ATG benefit. Suppose,
11:22 they are donating 50%, they'll get ATG benefit to the extent of that 50%. So, it's a good initiative.
11:28 It's a social cause and people who are interested in participating in that social cause should look
11:33 at this. So, I mean, kudos to HDFC. I would want to see more of these initiatives from other fund
11:38 houses as well. Harshad, can you come in because I thought, I mean, since one can donate 50 to 75%
11:44 of the return, but there is also a tax element out there, Harshad. Any thoughts that you have,
11:48 which are different than what Suresh mentioned? Sure. So, I agree with Suresh. It's a very good
11:53 initiative, no doubt. And I think the numbers are like 13,000 patients being... And I think
11:58 the average, if in case we take the average, they are probably around, the average amount is around
12:02 5 lakhs per patient, which is good for the people who come with that kind of a illness because very
12:10 much help that they need. But this is an FMP at the end of the day, right? And there is a segment
12:19 of investors who will typically use these kinds of investments when they look at... Of course,
12:23 this is not an investment. I think I agree with Suresh. It's more about people who would like to
12:27 donate back to the society in the form of investments at the same time. Probably, they are
12:31 the IRR or the returns for the investor at the end of the day would come to around 2%.
12:35 Rest of the money they are passing on to the society, which is good. But there is a segment
12:41 of investors who will typically invest into these funds. And when you look at, originally look at
12:46 FMPs, FMPs have been used by HNIs or retired investors. So, retail investors may not be that
12:54 keen to participate. Of course, there are a lot of people who would like to give it back to the
12:58 society and they may participate in these funds. But at the end of the day, it's a very good
13:03 concept. It's a very good initiative. And through the investment, if we are able to help
13:10 people who need it, it's a very good way to do it.
13:13 Okay. Well, viewers, there you have it. The whole idea of including this in this conversation was
13:20 that for a lot of people who are looking for avenues but don't have one, both our experts
13:26 believe that this is a good way to do so. There's a trusted brand name out there. And I think the
13:30 cause lists out the charity to which the impact to which the impact foundation to which the money
13:36 is go to as well. Donations can happen. You get your ATG receipts as Sudej mentioned as well.
13:41 So, give this a serious look, not for a person. I mean, it is an investment because when you
13:45 invest in this, you feel happy. So, in some sense, it's an investment as well, but not an investment
13:50 in terms of you getting returns of monetary returns, but being able to help others. So,
13:54 that's the key thing. Now, when you want to talk about getting monetary returns,
13:58 there are other NFOs which are on. One such NFO is the Miria Asset Multi-Cap Fund. The NFO is
14:04 open for subscription from July 28. So, it opened a few days ago until August 11. And the fund
14:10 manager of this NFO, Ankit Jain, joins in right now on the show to talk about what is the idea
14:17 behind this NFO and what are the kind of returns that they believe they can deliver to the investors
14:23 over the course of the next 1, 2, 3, 5 years. Ankit, good having you. Thanks for taking the
14:28 time out. Yeah. Hi. Thank you, Neeraj. Thanks for your time. Yeah. The pleasure is ours. So,
14:33 Ankit, tell us a bit about the NFO. Yeah. So, NFO is about Miria Asset Multi-Cap Fund.
14:40 So, this is a category, multi-cap category, which is very unique category, which you have,
14:45 I think, pretty good allocation across all the three buckets of the market, large,
14:48 mid, and small, minimum 25% each in all the three buckets. And then 25% is the flexibility to
14:55 allocate in any of these segments. So, I think this is a very interesting category because,
15:00 I mean, if you really look into historically, I mean, I think one part of the market to behave,
15:06 I mean, maybe to outperform one year and then sometimes large, mid, small. This has a product
15:13 which can combine all these three buckets in the right proportion. And I think do offer a lot of
15:21 value as such. And this will also be one of the product from our basket, I mean, in terms of
15:26 diversified portfolio, relatively higher proportion of the small cap into this. So, to that extent,
15:33 also, I think it becomes even much more interesting category. So, I think this is a category which
15:38 to provide a pretty good balance of, I think, large caps on the one hand during volatile times.
15:44 And I think during buoyant time, I think mid and small cap could allocation also to provide,
15:48 I think, desired sort of alpha over time. I heard you say that it will have a large
15:53 proportion of small caps. And I heard you also say that small cap during buoyant times.
15:57 Are we to believe that you guys as a house believe that the next three years are buoyant times and
16:02 therefore a higher allocation to small caps could yield better returns? Yeah, so absolutely. Yes. I
16:09 mean, if you look into the sort of a, I mean, a change in the economy has it happened. I mean,
16:14 last five year, if you look into small cap earnings growth has been at around 14% or CAGR.
16:19 And that is irrespective of the fact that last five year might not be the best of the macros. I
16:24 mean, even prior to COVID GDP growth was less than 5%. Then COVID stuck and then we saw geopolitical
16:32 issues, inflation, interest rate, I think a lot of things that happened. Despite of this, I think,
16:37 I mean, small cap earnings growth has been decent. And going forward, if we are talking about I think
16:43 macros being pretty rock solid at this point. And that being further, I mean, sort of supported by
16:49 bottoms up micro improvement across many of the sector in terms of the leveraging of balance
16:53 sheets. That offer I think that much more sort of a earnings visibility. And if that is being the
17:00 case, definitely yes. I mean, I think near term valuations are expensive, but it's a historical
17:05 average. But if someone is having a, I think, time horizon to play, I think three, five years sort of
17:12 a time horizon, I think this as a product with good mix of mid and small cap can, I mean, can
17:17 really, I mean, do well. Got it. Ankit, please correct me if I'm wrong, but are you giving some
17:24 bit of either back-tested data or some estimate to people or forget the data, but here's the
17:30 question for people who are either listening to you right now or will listen to you when they
17:35 see the show later on, or will read the story about the show that we write on our site.
17:39 I would love to know that if they're investing in a fund like this, what is the kind of return
17:44 that they can, you know, and we say over a three-year period, because I'm sure you tell people
17:50 that don't invest for one year, invest for three years. So people are saying, okay, you're ready
17:53 to invest for three years or longer than that, but at least give us some idea about what the kind
17:57 of returns that we can get so that we can take an informed decision. What would you say to that?
18:02 So this is first of all, relatively a newer category with newer benchmark, I think just
18:06 couple of year old, but if we take the same sort of a benchmark constant and try to do back-testing
18:11 of data, then I think last five-year rolling return has been into the mid-team, I mean, sort
18:16 of a number. So I think clearly, I mean, if you try to look into from the return expectation point
18:22 of view, it has to be a function of earnings growth going forward. So typically, I mean,
18:28 if we look into market over longer time horizon, I mean, ideally low-team sort of earnings
18:32 expectations has to be there because nominal GDP growth rate itself is around 10, I mean, 10 odd
18:37 percent. And within that, typically, I mean, I think the listed larger companies do tend to grow,
18:43 I mean, faster than the overall, let us say, nominal GDP growth rate in terms of earnings
18:46 growth. So keeping that thing in mind and over longer time horizon, typically, mid and small
18:52 cap tend to give, I mean, 2-3 percent additional sort of earnings growth over large cap, I mean,
18:58 for a reasonable sort of a time horizon if you try to look into. So I think in a product with
19:03 mid and small cap, weightage is going to be 50 percent plus for sure, 55 percent or so.
19:09 I think aggregate earnings growth ideally has to be somewhere at around, let us say, I mean,
19:14 mid-teens sort of a number. And even if, let us say, I mean, a starting point of valuations being
19:20 bit expensive versus historical average, I mean, ideally low-teens sort of an expectations,
19:24 I mean, one should keep in mind from the longer term standpoint.
19:28 Got it. Ankit, my final question, people also love to identify with the traits of the fund
19:34 manager managing the fund. And some people love aggressive fund managers, depending on the
19:39 category, some people like conservative managers, some people like balance. And there are all three
19:44 kinds. So I'm trying to understand that when people are thinking of the fund manager who's
19:48 managing this fund, the multi-cap category, a three-year horizon or a five-year horizon,
19:53 what is the kind of investing trait that the fund manager, which is you in this case,
20:00 brings to the table for this fund? Yes, so it has to be, I think, very balanced sort of an approach,
20:05 I mean, across style, and then across the market cycle. So we do follow a set template of
20:12 our sort of an investment philosophy, which is obviously first bucket being always to invest in
20:19 growth-oriented companies more so India being a growth-oriented market, first priority always
20:24 remains to invest there. And then that also has to be backed by I think, to participate deep in
20:31 value businesses, right. So it is sort of a barbell sort of an approach, where I think a large
20:36 proportion has to be into maybe 75% of the portfolio into high growth-oriented companies
20:42 up to a reasonable price. And then second is about participate deep in value businesses.
20:47 So I think pretty good blend of these two style into the portfolio with enough diversification
20:54 across different sectors typically try to avoid taking very heavy active sector call.
20:59 But I think active stock call can be significantly higher depending on to our sort of a conviction
21:06 on that name, and our sort of internal price value frameworks. So I think idea always remains that
21:14 try to deliver I think consistent, I mean, consistency, I mean, across the cycle,
21:22 while not taking very heavy active sector call, but at the same time,
21:25 try to deliver the desired sort of return through bottom of stock selection. So I think that
21:30 clearly remains the, I mean, remains the investment philosophy. And I think we'll try to work with that.
21:36 Excuse me. Well, wish you all the best for that. Your house has done some really good work in the
21:45 recent times. Wish you all the luck and more for this new fund as well.
21:50 Thanks. Thanks a lot, Neeraj. Yeah, thank you.
21:52 The pleasure is ours as well. So that's the view from the Mirai Asset team, their NFO,
21:58 multi-cap NFO is on till August 11. And you heard the man will be managing the fund. But what is his
22:04 view on what is it that they bring to the table, the kind of returns and the kind of risk tolerance,
22:11 et cetera, that he brings to the table as well. Harshad, I'll start with you on this one.
22:17 You would have studied the NFO as well. You heard the man who's managing the fund as well here.
22:24 What is your advice? Because typically people say that when it's an NFO,
22:27 wait for it to get proven and then go out and subscribe. But Mirai has now had last few years
22:35 of fairly strong equity fund returns as well. How would you look at this NFO?
22:40 Yeah, so there's no doubt that Mirai as an asset management company has done very well when it
22:48 comes to the equity fund and over the years we have seen the proven track record. Of course,
22:52 every fund goes through its phases and every fund house can go through its phases. So we can
22:59 easily discount the near-term underperformance when it comes to just peers. But I think overall,
23:04 if in case anyone look at Mirai from a longer-term perspective, most of the funds have done
23:10 very well for the investors. So we also follow the same view when it comes to Mirai.
23:14 Coming back to the category, I think multi-cap category is a much more younger category.
23:20 It has gained a lot of popularity in last few years. If you see that in over a one-year period,
23:28 I think the highest number of jump in terms of the highest AUM jump has come into this category. In
23:33 case I leave out small cap and dividend yield funds. So the focus has shifted to multi-cap
23:40 and that's predominantly because a lot of investors are excited about the mid-cap and
23:44 small cap space. And this fund offers that because you have to put around 25% in mid-cap and 25% in
23:50 small cap. And predominantly you would have seen the kind of interest or the flows that are coming
23:58 into these funds in past. Every fund house wants to be in that category and so does Mirai. And
24:06 it's a prominent category. Mirai has all their funding in the prominent category. This was one
24:13 of the missing links. So they're trying to get into it. Of course, one can look at their track
24:19 record over the past when it comes to their equity fund management and then decide on what is the
24:25 right thing to do with the new fund. What's your advice, Ashok? Subscribe or not subscribe?
24:31 So you're asking me? Yes. So I have been someone who prefer an existing fund with a proper track
24:37 record when it comes to the category. Their track record as an equity fund manager is great,
24:44 no doubt. But at the end of the day, I'm putting my money into a fund and I may like to wait for
24:49 some more time till the time to decide that is this a multi-cap fund which I want to be into
24:54 or there are existing multi-cap funds with proven track record and I would like to opt for that
24:59 if in case I compare them. But I need some comparable data. So I will wait for some more
25:03 time. Okay. And I'll come to you for the names as well. But let me get Suresh into this. Suresh,
25:07 what is your thought on this NFO? So I think you started with the fact that typically many
25:15 people do not recommend NFOs and I mean, I'm one of them. We generally do not recommend NFOs
25:22 because typically any NFO that comes, typically there are many, many more in that category or
25:29 a related category. In this particular case, the related category will be a plexi-cap,
25:34 though it is not exactly the same, but the components can be very, very similar.
25:38 So the plexi-cap category, I mean, there are quite a few. Multi-cap, there may be comparatively less.
25:43 But if you look at multi-cap and plexi-cap together, I think we have a credible list of
25:48 good performers. I completely agree with Harsha that Mirai Asset has been a wonderful equity fund
25:55 manager and they have proved their mettle with many, many funds across the board, across time
26:01 frames. So it's anything coming from Mirai Asset, I mean, we really have to take notice. But having
26:09 said that, I mean, I would be cautious about putting my client's money into any NFO. It's
26:14 not about this particular NFO. Because other credible options are already available,
26:20 though we keep saying that, I mean, past performance is no indicator of the future,
26:25 but still the past performance, I mean, accounts for something. And we know what is the fund
26:30 manager's style. We know what are the kind of return they have generated in the up phase,
26:34 down phase. I mean, we know all that. So from that point of view, we would want to be slightly
26:38 cautious. We would want to see some kind of a track record, performance record over a period
26:43 of time. And after that only, we would want to, I mean, recommend that. So there is one more point.
26:50 One more point is, I mean, we would be ideal, I mean, we are putting together the portfolios
26:54 for our clients. So if we are putting together the portfolio, let us say a large cap portfolio,
27:00 mid cap component, small cap component, I would like to choose three different funds,
27:05 instead of a multi-cap or a flexi-cap fund, because I have a lot, lot more control in what
27:10 kind of components are there in my client's portfolio, rather than a multi-cap category,
27:14 which I do not really have too much control over. So that is also another reason why I would be
27:19 slightly cautious about recommending multi-cap as a category. Okay. So you are avoiding the
27:23 category as well, per se. I was trying to ask, I want to ask you that instead of the Mire NFO,
27:28 are there other good names in the flexi or the multi-cap category that you would recommend?
27:34 You are saying you do not like that category only per se, but if you had to, are there funds that
27:39 you would, that you like there? Suresh? I am not sure whether I am supposed to,
27:44 I mean, give you those names. I am not very sure. But, but I mean, there are, there are flexi-cap
27:48 funds, which we generally do recommend. In my opinion, multi-cap funds, it is a bit of a
27:55 straitjacket, which has come into a multi-cap fund, because the fund manager has to invest at
27:58 least 25% or more. Flexi-cap that way is giving more latitude, more flexibility to the fund manager.
28:05 And I would prefer that, I mean, if I want to trust the fund manager, I would want to trust
28:09 the fund manager 100% when it comes to that fund, in terms of going anywhere and putting that money.
28:14 So I would prefer a flexi-cap over a multi-cap category, if you ask me. Okay, get your point.
28:19 Okay, Harshad, come to you. I heard you mention that there are options out there. Would you be
28:25 in a position to tell our viewers, maybe an option that they can then do their own research,
28:31 and then put in the money if they feel the risk reward is right?
28:34 Sure. So I think, the flexi-cap, the multi-cap is basically, has become a sort of a subset of
28:42 flexi-cap, which was earlier the same category, which got split. So there's a lot of comfort when
28:47 it comes to flexi-cap, because as Suresh said, and he's right on that part, because the flexi-cap
28:52 fund have the option of controlling the allocation between the market capitalization, which is not
28:58 there in multi-cap. So the comfort is more in flexi-cap, very frankly. And there have been
29:02 very good flexi-cap funds. If in case, of course, I can name a few, but not necessarily that it has
29:10 to be. That's not an exhaustive list. Sure. So there is a flexi-cap, Parag Parik flexi-cap,
29:15 and there's HDFC flexi-cap, which is doing well. And if you see, there are other, when it comes to
29:23 multi-cap, I don't recollect the name exactly, but I think there's a Nippon multi-cap or HDFC
29:28 multi-cap, which is doing quite well. I need to reach it on that particular aspect. But having
29:34 said that, if in case an investor would like to invest into more diversified way of parking money,
29:40 where, because we have to understand that when it comes to multi-cap, by default, 25% will be in
29:46 small-cap and mid-cap, and 25% mid-cap. So 50% of the portfolio will have a higher risk. That may
29:53 not suit all the investors if in case they are at the initial stage of their investment, or not
29:57 necessarily at the initial stage, even though they are at a mature stage, their appetite may not
30:01 permit them to do. So there, the flexi-cap category could be better. But having said that, as we have
30:06 seen, there are a lot of investors who have parked their money in multi-cap. So it clearly says that
30:12 there are investors who are keen to park their money. Okay. Well, I think we got some answers.
30:18 Now, unfortunately, we are out of time completely, otherwise we would have to talk more.
30:22 But we have to call it a day here on this leg. So, Harshad and Suresh, thank you so much for
30:28 taking the time out and being with us and giving us all the wisdom. Thank you. Thank you, Nikesh.
30:32 Thank you, Nikesh. Thank you.
30:33 Guys, thanks for tuning in this leg of The Mutual Fund Show.
30:44 And thanks for listening.
30:54 [BLANK_AUDIO]
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