Latest news with #NavneetMunot
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Business Standard
24-06-2025
- Business
- Business Standard
HDFC AMC launches innovation fund with thematic bet but higher risk
HDFC Asset Management Company (AMC) has launched an open-ended equity scheme that will invest in companies with 'innovative' products processes or business models, it said on Tuesday. HDFC Innovation Fund opens on June 27 and closes on July 11, 2025. The thematic fund will give investors 'exposure to firms that are at the forefront of transformation, driven by digital adoption, startup energy, and government-backed innovation policies', said HDFC AMC on Tuesday. 'With our research-driven approach, we aim to capture the long-term wealth creation potential of innovation-focused businesses,' said Navneet Munot, chief executive officer and managing director of HDFC AMC, about the new fund offer (NFO). HDFC Innovation NFO's key features Benchmark Index: NIFTY 500 (Total Returns Index) Approach: Bottom-up stock picking, diversified across sectors and market caps The HDFC Innovation Fund will be available in two plans, Direct and Regular. The Direct Plan is meant for investors who invest on their own and comes with lower costs, while the Regular Plan includes distributor commissions. Each plan offers two options: Growth, where returns are reinvested to build wealth over time, and Income Distribution cum Capital Withdrawal (IDCW), which provides periodic payouts to investors seeking regular income. Opportunities and risks Opportunities: Gain early exposure to India's innovation-led growth stories. Diversified play across sectors and market caps. Potential long-term capital appreciation through transformative businesses. Risks: It may be more volatile than diversified equity funds. Concentration in innovation-led sectors may underperform in certain market cycles. Market timing risk during the NFO period could affect short-term returns. Should you invest? Innovation is undeniably a long-term structural trend in India, supported by government policies, a tech-driven startup environment, and digital acceleration. However, as with all equity investments, especially thematic ones, investors must align this with their risk appetite and investment horizon. Those looking for long-term growth and comfortable with potential short-term volatility may find this fund a strategic addition to their portfolio. Conservative investors may prefer to wait and watch how the fund performs post-NFO.
Mint
22-04-2025
- Business
- Mint
Navneet Munot's investment philosophy: Key takeaways from his journey
Navneet Munot, MD and CEO of HDFC Asset Management Company (HDFC AMC) is one of the most recognised names in India's mutual fund industry. He has over three decades of experience managing assets. Taking care of assets worth over ₹ 6 lakh crore, Munot has played an immensely important role in shaping up the investment landscape in India. He has also held several prominent positions at SBI funds management and Morgan Stanley investment management. His roles at these leading firms have contributed to the growth of the Indian financial sector. Serving as the Chairman of the Association of mutual funds in India (AMFI) he has also participated in key SEBI committees on ESG and market regulation. Now, at the core of Munot's investment strategy is the concept of STP. Further, STP stands for Sound investments, Time and Patience. He puts emphasis on long term, calm and disciplined investing over short term, thrill based speculation, stressing that wealth creation is a gradual process of taking several good investment decisions and is not about rushing with investments. This process of compounding wealth by thinking long term, benefits those who start with their investments early and remain committed. Munot's own investment journey started in the 1980s when Sensex was in its initial stages. Today the same index hovers around 79,500 levels. To further elaborate on the same and the role of compounding let us take a look at the past 5 year returns of Nifty 50: Year Nifty 50 (yearly return) 2025 1.66% (YTD) 2024 8.75% 2023 19.42% 2022 4.32% 2021 24.12% Source: PrimeInvestor The above data clearly directs investors to focus on the long-term compounding process instead of short term thrills. On a long term basis Nifty 50 generally compounds by 13-14%, that is why investors should keep these figures in mind while making investment decisions. Further, Munot's strategy elaborates on not only focusing on the process of compounding but also on the importance of composure, patience and staying invested in strong businesses that have delivered strong earnings. He has always encouraged new investors to stick to this simple investment strategy even during stock market corrections, volatility and economic downturns. Despite uncertainties related to Trump tariffs, US-China trade war and domestic market fluctuations, Munot has always stayed bullish on India's long-term growth potential. Indian equity markets are hence a stock picker's paradise if someone focuses on building knowledge, reading and understanding the fundamentals of the Indian economy. This simple idea has been elaborated by him through numerous press interactions. India's young population, demographic dividend and the ongoing economic reforms are key drivers of market potential and future growth possibilities. According to his thesis, It is also important to remember that market corrections in India present opportunities for those investors who can focus and identify undervalued stocks. The rapid financialisation of savings in India, with SIPs now contributing more than ₹ 24,000 crore in monthly inflows into mutual funds is also a crucial point to keep in mind while making investment decisions. Munot has long been a proponent of sensible investing, championing the integration of environmental, social and governance factors into his holistic investment thesis. He has been at the forefront of pushing for sustainable investment ideology in India during his association with SEBI as the chair of the first ESG committee. Through these ideas, investors can inculcate the habit of making sensible investment decisions while adhering to social responsibility norms and aligning with global standards. A key step in this particular process is to read and stay informed by reading extensively about the social, environmental and governance (ESG) aspects of investing and incorporating and inculcating these ideals into investment ideologies. Munot, like several other prominent investment leaders envisions India becoming a major player in the global investment ecosystem. Through his numerous media interactions he has projected that India's demographic dividend, coupled with its rapidly evolving digital infrastructure along with government led initiatives will create significant investment opportunities in the years to come. To make the most of this growth opportunity retail investors in India should diligently read, discuss with certified investment advisors, focus on the process of long term compounding and invest in businesses that can scale the numbers and deliver in the long run. SIPs have now turned a corner and are the real deal today in the country. The number of individuals opting for a disciplined and systematic approach towards investment have rapidly risen over the past few years. The major reason for this is both rising financial and digital literacy. Today with more than ₹ 24,000 crore flowing into mutual funds SIPs every month according to AMFI data, this trend is a major catalyst for the financialisation of savings in India. All sensible retail investors should read and understand this trend and apply the simple investment ideals shared by Munot to make considerable wealth in the years to come. The ideals of Munot as elaborated above are easy to replicate but difficult to sustain for longer periods of time. Still, if you can focus, select strong businesses, discuss with investment professionals and build a long-term portfolio. Post the same hold your ground for several years, then Indian equity markets can really transform your life as an investor. Hence, Navneet Munot's philosophy offers invaluable lessons for Indian investors. Particularly at a time when according to a recent report of SEBI 9 out of 10 individuals participating in F&O are losing big money. Not only this, the report further added that the aggregate losses of individual traders exceeded ₹ 1.8 lakh crores over the three - year period between FY22 and FY24. In such an explosive environment it becomes even more important for investors to learn and listen to the words of wisdom shared by reputable financial market leaders such as Navneet Munot and to practice sensible investing techniques after prudent discussions with their own financial advisor. Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions. First Published: 22 Apr 2025, 09:56 AM IST
