The Hindu Business Line : `It is not always wise to have short-term view'

Yes, stock movements have been lately quite unpredictable. Investors have seen extreme volatility in many cases. The latest run-up is largely a result of strong FII inflows... we have even heard of interest originating from Japan.

Given the run-up, the market may well falter at some stage. Investors should stay prepared for such an event, especially if sentiments suddenly turn weaker than what is expected.

For the average investor, it is particularly important to decide whether he or she is in for the long-term. It is a personal decision that is likely to be influenced by many considerations. If the person concerned is not here with a sufficiently long-term perspective, things will have to be done differently.

The point is it may not always be too wise to adopt a typical short-term view.

How is HSBC MF coping at this juncture?

The last year was good for us as we could add quite substantially to our assets under management. Our AUM stands enhanced by about Rs 100 crore since the end of the last quarter.

Generally speaking, the business has moved along the lines that we had planned for earlier. In fact, our equity assets currently stand at roughly Rs 2,000 crore, which is higher than the industry average.

The MF is now looking forward to launching at least one new product.

On another front, we are trying to extend our reach by setting up new branches. I must tell you here that the MF has recently started a fresh campaign, mainly with the view to inform the market about our flagship equity scheme. The exercise is backed by an attempt to understand investors' attitude towards the stock market and the factors that should ideally lead them to equity funds.

Can you elaborate on the proposed offer?

Well, we have filed a draft offer document for a scheme aimed at investing in mid-cap stocks. This will be called Dynamic Midcap Fund. Regulatory approval is awaited.

In our view, investors today are looking for options that can be defined very clearly. It's true that at least one of our existing products already has some exposure to mid-cap stocks. A little overlap seems to be acceptable but the new offering will definitely focus on mid-caps.

After it is introduced, clients will be able to opt for yet another scheme, one that is quite different from the others in terms of investment strategy. However, we are really not in a tearing hurry to launch it; it will be done when the time is right. There is no point in having too many products in our stable.

Do you subscribe to the view that declaring average assets is important for MFs?

Absolutely. There is no point in displaying bulky asset figures at the end of every month. It can distort perceptions.

Declaring average assets is a good practice. It is in the best interests of investors too.

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`It is not always wise to have short-term view'