Nimesh Shah, MD & CEO, ICICI Prudential Mutual Fund, on how they have beheld investors' confidence over the years.
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NewsTranscript
00:00 See, we have continuously evolved ourselves in that.
00:15 It was very important that we come up with the right products at the right time.
00:20 If I start from 2008, we came with a product called ICICI Prudential Focus Blue Chip Fund.
00:26 It was very clear that if a common man is putting in equity for the first time, he should
00:29 invest in large caps and large caps also, he should be such that he has minimum negative
00:36 experiences.
00:37 We cannot guarantee there will be no negative experiences, but at least the weightage in
00:43 that fund of each industry, there was so much diversification in that and only in large
00:47 cap that the probability of beating, what we did, we wanted him to beat the benchmark.
00:53 The fund should beat the benchmark.
00:55 On a consistent basis, if you are able to get a fund which can beat benchmark by 300
00:59 basis points, then we have done it.
01:01 So out of the last 32 quarters that the fund has run, it has completed 8 years, almost
01:05 27 quarters it has beaten the benchmarks.
01:08 So that is the kind of consistency that the fund has been, because the way the fund is
01:11 structured.
01:12 So create funds which have relatively negative experience and that structuring is done.
01:17 I always say mutual funds have to be, no product of ICICI Prudential mutual fund can be missold.
01:28 It is not possible to missell my products because we have constructed them in a way
01:33 that it is right for the common man in Guwahati.
01:36 I know that my products will be sold in 200 towns of India.
01:40 So every product of mine, if the common man in Guwahati or Kottayam or Rajkot stays with
01:47 my fund for 3 years, he should get a reasonable experience.
01:50 That is the objective before which we don't sign off on a product.
01:53 So the number of people who would have bad experience with our products will be that
01:57 much lesser.
01:58 So if you have achieved that, we have seen customers don't look at trying to, they
02:04 don't want a 30% return per annum.
02:06 If you give them a return which is slightly more than a fixed deposit over a period of
02:10 time, they are very happy with you, because this is a tax free return.
02:14 So my sense is try and give something, create products which give more than a fixed deposit
02:19 return over the next 3 to 5 years.
02:22 If we are able to do that, something more than fixed deposit over a period of time,
02:26 customers will be happy with us.
02:27 So create more and more happy customers, you have done it.
02:29 Thank you.
02:33 (upbeat music)