Where do fund mangers invest their money?

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The mutual fund industry in the country is growing steadily and most financial advisors advise investors to invest in mutual funds. But where do those who run mutual funds themselves invest their money? When Money9 asked this question to A Balasubramaniam, Managing Director and CEO of Aditya Birla Sunlife AMC (ABSL AMC), one of the country’s leading investment companies, he said that he invests 100% of his investment in mutual funds and 80% of that investment goes into equity funds. A Balasubramaniam said that he also has an investment in EPF in the name of fixed income. He said that investing in equity funds gives the benefit of compounding in the long term.

A Balasubramaniam, who has been associated with the mutual fund industry since 1994, told Money9 in an exclusive interview that the size of the mutual fund industry in the country is growing rapidly and currently 3.5 crore unique investors are associated with it. This figure could be 30 crore in the next 10-15 years. He said that the regulator is making big decisions in the interest of investors, which has benefited AMCs and distributors as well. It has also increased people’s trust and the size of this industry has crossed Rs 45 lakh crore.

A Balasubramaniam said that earlier it was difficult to explain to investors about mutual funds. But the 2008 crisis made investors understand the strength of the mutual fund industry, during which mutual funds won the trust of investors. He said that the ‘Mutual Fund Sahi Hai’ campaign launched after demonetization also proved to be a turning point for the mutual fund industry. Due to that campaign, investment awareness increased in the country.

On the investment strategy in mutual funds, A Balasubramaniam said that citizens should always decide to invest by looking at the fund house, he said that investors should only invest in mutual funds for long term. They should only break mutual fund investment in case of emergency.