“The future of mutual funds looks promising"
Given that the current landscape of mutual funds is dynamic and evolving, Rashida Kalolwala, COO, Edelweiss Mutual Fund, states in this interview that the shift towards digitalisation and the emphasis on transparency are some of the factors that will further propel the growth of the mutual fund industry
Could you share with us your journey in the financial industry, leading up to your role as the COO at Edelweiss Mutual Fund?
I began my journey with Forefront Capital in product and business development, which was later acquired by Edelweiss Group. Over the past 12 years at Edelweiss Group, I have held various positions, including roles in product, strategy and business development. Throughout this time, I have taken on increasing levels of responsibility and gained a comprehensive understanding of running an asset management business, while also identifying my strengths and areas for improvement.
I have had the opportunity to lead teams and contribute to various projects and integrations. This journey led me to my current role as Chief Operating Officer (COO) of Edelweiss Mutual Fund, where I oversee the company’s operations. My role truly brings out my strengths of execution and driving efficiency while also demonstrating strong people management skills and identifying and developing the right talent for our organisation’s success.
What are the key responsibilities and challenges you face as COO?
As a COO and a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business, this includes coming up with new ideas to do things more efficiently and innovatively and dealing with problems that may come up along the way. In order to do this, we use new technologies or change the way certain tasks are done. It’s also important to keep an eye on costs and make sure the company is using its resources wisely.
At Edelweiss AMC, we firmly believe that our foremost duty extends to ensuring customer satisfaction and fostering positive experiences. This commitment is integral to their investment journey and cultivates trust in our company. Remaining attentive to customer needs and ensuring the company’s agility in meeting those expectations are paramount.
How do you see the current landscape of mutual funds in India, and what trends should investors be aware of?
The current landscape of mutual funds in India is dynamic and evolving. In my opinion, investors should be aware of three major trends:
- The shift towards digitalisation has made mutual funds transactions and information increasingly accessible online, making investing more convenient.
- There is an increasing focus on transparency and regulation in mutual fund operations, providing investors with confidence in the industry.
- The ability to start small and invest consistently through systematic investment plans is the key to achieving your long-term financial goals.
Edelweiss Mutual Fund has a diverse range of investment products. Could you highlight some of the key offerings and their unique value propositions?
Edelweiss Mutual Fund offers a variety of investment products depending on different investor needs. To that extent, we have about 53 mutual fund schemes. Of these, 23 are equity and index funds, five are hybrid, 17 are debt and eight belong to international and other categories. Our product suite encompasses an entire risk return spectrum which is designed to offer the best opportunities for growth of investment in both Indian and global asset classes.
Our flagship fund, Edelweiss Balanced Advantage Fund follows the pro-cyclical strategy. Under this strategy, the fund increases its equity allocation in a rising market and reduces it in a falling market. The reason behind this is that the fund aims to capture the upside during the bull market and contain the downside in bear markets. It offers a disciplined approach to investing and managing risk and returns. Another popular fund is the Edelweiss Mid-Cap Fund, which has a 15-year track record and is a great avenue to get exposure to mid-sized companies.
This fund captures their growth potential and is a good way to benefit from India’s growing economy. Additionally, we offer unique solutions such as the Edelweiss recently listed IPO fund and the Edelweiss Multi-Asset Allocation Fund which are pioneering offerings in the industry that provide investors with distinct investment opportunities. In conclusion, we advise investors to diversify their portfolios and align their investment decisions with their financial objectives, risk tolerance and investment timeframe.
Performance of Edelweiss Balanced Advantage Fund
What are your thoughts on the future of mutual funds in India, especially in terms of digital transformation and investor education?
In India, the future of mutual funds looks promising, especially with the embrace of digital technology. Investors can easily access information online and choose convenient investment options. They can also see more transparency in how mutual funds work, thereby increasing trust in AMCs among investors. Digital platforms have made knowledge and information more accessible, attracting investors from smaller cities.
Transactions are now processed more efficiently and the time it takes to respond to investors and regulators has decreased tremendously, leading to fewer customer complaints. Overall, the digital shift, along with the increasing use of artificial intelligence (AI) and machine learning (ML), has enabled AMCs to boost the overall customer experience. AMCs are also deploying additional cyber security measures that have tremendously helped contain fraud in digital investments.
Edelweiss Recently Listed IPO Fund.
Finally, what advice would you give to investors looking to invest in mutual funds in the current market conditions?
For investors considering mutual funds in today’s market, I would like to offer two pieces of advice:
- Diversify your investments across different types of mutual funds by choosing funds that align with your goals, timeframe and risk tolerance.
- Consult with a financial advisor if you are unsure about which funds to invest in or need advice. They can help guide you through your specific financial situation and goals and enable you to start early!
Disclaimer: The opinions expressed above are personal and may not reflect the views of Dalal Street Investment Journal.