Interview - Vishal Kapoor CEO, IDFC AMC
Dalal Street Investment Journal|Dalal Street Investment Journal Volume no 34 Issue no 21 September 13th 2019
The Best Asset Allocation Looks To Maximise Returns And Minimise Risks In Line With Investors Profile And Objectives
Interview - Vishal Kapoor CEO, IDFC AMC

There has been a decline in the SIP inflows in the last two months (May and June) before recovering in the month of July 19. What is the sense that you are getting from investors?Are they frustrated with lower or negative returns? So, how has it impacted IDFC Mutual Fund and what measures the fund house is taking to control this situation?

It is good to see that the flows are still very strong with smart investors continuing to believe in the long term benefits of staying invested and reaping the benefits. When one looks at the quarterly averages between quarter ending in December, March and June, you will notice that consistently the averages have moved up for net SIP inflows and this despite the market being extremely volatile. This indicates a maturing investor who understands the value of staying invested,especially when the market is volatile. In terms of SIP book, IDFC Mutual Fund has grown faster than the industry. The average SIP book for the industry went up by 1.4% compared to last quarter and IDFC Mutual Fund’s SIP book grew by well over 10% during the same time. This is the outcome of our sustained efforts in promoting SIP as a smarter way to invest for long term investors.

The recent credit events such as IL&FS, Essel group and DHFL have adversely impacted the debt mutual funds, specifically, the credit risk funds and FMPs. How do you look at credit risk funds, going forward?

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