On The Road Less Travelled

In the stereotypical world of fund-management, male fund managers usually get splashed across newspapers — but where are the women? Morningstar reported recently that women were under-represented and constituted a mere seven per cent of fund managers. Women manage altogether Rs 2,320 billion, which constitutes about 15 per cent of assets under open-ended funds. Yet, very little is known of them.

In the field of finance, many leading women are running multi-billion-dollar financial businesses. So when it comes to fund management, women are probably equal to, or even better than men. BW Businessworld scouted out some low-profile women fund managers, who manage funds that were not so small.

Anju Chhajjer, senior fund manager, Reliance Mutual Fund, grew up in a family of chartered accountants. So, for her, the world of finance always beckoned. Chhajjer stuck to the family tradition and mastered the world of finance as well.

She honed her skills in fixed-income fund-management at National Insurance. For her, there was no looking back since. Fund management, though, brings with it, fresh challenges, every day.

Says Chhajjer, “Every day is a new day. There are new things happening every day. Managing a portfolio and the responsibility you have and the kind of money one is managing is huge and humbling. You have to understand how fixed-income markets work.”

Chhajjer considers fixed income a much lower risk than equities, where it’s possible to suffer losses. “In debt products over a longer period of time,” says she, “it is very unlikely that you’d suffer a loss unless you come up against a credit event.” “Yes, duration too poses its own risk but over time,” Chhajjer says, adding, “the coupon takes care of duration risks. Also, as MFs invest in a diversified pool, credit risk is diversified.”

Chhajjer reckons that she wouldn’t be able to do any other job as she only knows how to manage money. “When you look at better yields in fixed income,” says she, “you ultimately think only of how you can better your performance.”

Asked what she’d be doing if she didn’t manage a fund, Chhajjer quips that she would probably be in the kitchen, cooking. Says she, “I love my work and love managing money.”

She also looks constantly at how to better returns, saying that it was the biggest motivator. “Your fund has to be one of the best performing,” and so I constantly see how I can improve performance.”

Within a year of joining ICICI Prudential Asset Management Company in 2012, Chandni Gupta got an opportunity she had been long dreaming of and working towards — namely, fund management. Initially a part of the products team, Gupta quickly rose in the ranks and demonstrated zeal and rigour to learn and more importantly, improvise further on the already established stringent process-driven ways of investment, which the fund house is known for.

Says Gupta, “I was passionate about investments and was on the mutual fund Sell side for quite some time. Thanks to the opportunities that came my way, I had the break to grow into bigger roles. Based on my performance, the company thought I could take up the present role — and here I am.” After starting in sales in 2006, Gupta took to pursuing higher studies and completed the CFA programme in 2010.

She soon joined the products team of ICICI Prudential MF. “Our focus here was more goal-oriented; hence, the emphasis has always been not to work for short-term returns but to concentrate on long-term goals,” says Gupta. For the young co-fund manager, managing fixed-income funds has been an exhilarating experience.

“I’m extremely happy managing fixed income,” she says, “It’s more macros than generally perceived, making it a very interesting subject.” There are challenges as well and the last four years have thrown them up in myriad ways. A key challenge is in constantly improving the process of investment.

Given that the business is all about investments, the pressure to generate returns is understandably huge. But Gupta has a different take on the pressure faced by a fund manager.

“The pressure is not on performance, but on thinking differently, thinking better and, consequently, improving the processes so that the outcome is better,” says she.

What aids in this journey is the ability to constantly review one’s work over and over again. “One has to be able to look at the last ten hours every day,” says Gupta, “knowing that you have thoroughly enjoyed them.

When she came into the world of money management, Meenakshi Dawar started researching and selling stock ideas. But soon the IIM graduate realised that fund management was what she would like to do and moved to the other side of the business, where daily net asset values (NAVs) and performance are cherished.

Says Dawar, “When I started working on equities, it naturally sparked my interest because it’s a dynamic role, and you are always on your toes, learning something new.” As performance is closely scrutinised in fund management, for Dawar the approach is to create one’s own style and define the parameters to make investments.

“There are many moving parts in equities,” she says. “You have to be one step ahead if you have to make a significant mark in your performance, and your style has to be unique.” Fund management is not an easy business, especially when one is managing public monies and all the hard work needs at some point, to reflect on rising NAVs.

“It doesn’t matter how hard you have worked. In the end, it is all about performance,” says Dawar. “So pressure of daily NAVs is high. But many people get into thinking their investment should start making money next month; that is not how it is.”

“Most global fund managers who have done exceedingly well, generated returns in their third year of investing,” Dawar says, adding, “You have to be able at some point to believe in your conviction.”