Our country and economy are on a strong footing, states DP Singh, DMD and Joint CEO, SBI Mutual Fund

I believe our country and the economy are on a strong footing where domestic as well as foreign investors are actively wanting to be part of our country’s growth story, says DP Singh, DMD and Joint CEO, SBI Mutual Fund.

As the Deputy MD & Joint CEO of the country's largest fund house, how do you envision the current state of the Indian mutual fund industry and its growth in the coming years? Can you highlight the potential challenges and opportunities?

As I see today, the Mutual Fund industry is positioned very well in the minds of investors who are looking to invest for their goals as we see inflows across categories – equity, hybrid and fixed income – through SIPs mostly in record amounts. The asset management companies, AMFI and the regulator, SEBI, are working together to make sure Mutual Funds remain true to label Sahi Hai for millions of investors looking to make their hard-earned money work towards their financial goals. 

Opportunities and Challenges are two sides of the same coin to me. The Mutual Fund industry remains one with great potential even in the light of evolving regulations and innovation in terms of offerings and services. All AMCs must remain aligned with changing investors’ needs in a dynamic landscape. Only then, mutual funds will be able to spread the benefits of investing to millions of savers across the country and help them achieve their financial goals in life.
 

What are your views on the Indian equity market performing in 2024, considering it's the Lok Sabha election year? What macro and micro economic factors are driving your outlook?

I believe our country and the economy are on a strong footing where domestic as well as foreign investors are actively wanting to be part of our country’s growth story. We are seeing growth across sectors, and this presents investors to invest in a multi-decade growth opportunity in India.  I would only advise investors to look at their individual circumstances, in terms of asset allocation, and financial goals when making any decision in terms of their investments.
 

SBI Mutual Fund recently launched the SBI Energy Opportunities Fund. How do you foresee energy as an investment theme?
 

The Energy sector is a multi-decade Atmanirbhar Bharat story as our country aims to move from being energy-deficient to self-sufficient. Our country’s commitments towards Green Energy initiatives like COP26 (Panchamrit Strategy), the Green Hydrogen Mission, and the Ethanol Blending Programme along with focused policy initiatives in the traditional energy sectors provide sufficient tailwinds for the Energy sector to grow in line with our country’s needs. 

With our country expected to be the third largest economy in the world, its per capita energy consumption could also witness a significant rise and opportunities exist across the entire spectrum of the energy value chain. As the largest fund house in the country, we believe that the SBI Energy Opportunities Fund is an opportunity to participate in the growth of the India Energy sector.
 

How do global market trends influence investment strategies at SBI MF, and how do you mitigate risks associated with market volatility?


We have a comprehensive in-house investment framework that considers Macros, ESG Factors and fundamentals with an overlay of quantitative analysis. The macro research tracks key indicators, including global and domestic trends, which ultimately results in asset allocation decisions while the quant framework eliminates say an analyst bias and sometimes acts as an indicator to catch emerging trends. 

As a fund house, we work on the SLR framework, Safety Liquidity and Returns, and set investment templates for each of our schemes to manage risk, as millions of investors place trust in their hard-earned money for their life’s financial goals.
 

What role do you believe mutual funds can play in promoting financial literacy and investor education? What are your initiatives in this area?

Mutual Funds as an investment solution are available to one and all, irrespective of the investment amount and type of investor (individual/corporate / HUFs). The versatility of mutual funds in terms of offerings across asset classes (equity, fixed income, hybrid, commodities etc.) gives someone an unparalleled choice to pick and invest for their goals. As a fund house, we believe that mutual funds need to be taken to the furthest corners of the country so everyone can invest and make their hard-earned money grow for their financial goals in life. 

As a fund house, we have the reach through our branches in over 260 locations and the vast network of over 22,000 SBI branches to ensure that we can serve over 95 per cent of the pin codes in the country. We aim to take asset management solutions to every Indian across the country and to that end we continue to develop investor awareness communication on different facets of mutual funds in multiple regional languages to speak to investors in the language of their choice. 

Our initiatives across mediums (digital, print, outdoor, radio and television) are to ensure that our messages have an effective reach and are persistent to ensure that the message is understood.