Tata Asset Management

About

Established in 1994, Tata Asset Management Private Limited has a track record of more than 25 years in investment management. Tata Asset Management Private Limited manages investments of Tata Mutual Fund.

As of 30th March 2022, it has an AUM of Rs 86,713 crores(~ $11.2 billion) spread across more than 43 funds i.e. more than 200 schemes in all asset classes and is among the top 10 mutual funds in India.

Key staff

Prathit Bhobe is the CEO & MD of Tata Asset Management Pvt Ltd. He joined the company in 2018. Bhobe has spent 11 years at ICICI Bank as senior general manager heading the Retail Liabilities Product, Wealth Management and Private Banking business. Before that he had an eight-year stint at Citibank, where he ran the banking vertical in the distribution process.

Rahul Singh is the CIO, Equities Tata Asset Management Pvt Ltd. He was also appointed in 2018. With over 26 years of investment experience, Rahul Singh joined Tata Asset Management Pvt Ltd. in October 2018 as CIO-Equities, leading the fund management and equity research teams. In his previous role at Ampersand Capital Investment Advisors LLP, Rahul was the Managing Partner. He has also worked with many reputed financial institutions like Standard Chartered Securities and Citigroup Global Markets India as Head of Equity Research. Rahul is a Bachelor of Technology in Mechanical Engineering from IIT Bombay and an alumnus of IIM Lucknow where he pursued his Master of Business Administration in Finance and Financial Management Services.

Murthy Nagarajan is the Head of Fixed Income at Tata Asset Management Pvt Ltd. He has been associated with the company since 2016. With an expertise spanning decades in the debt market, Murthy brings in a rich and valuable industry experience of more than 24 years in the financial services space. Prior to his appointment at Tata Asset Management Pvt Ltd, Murthy was working with Quantum AMC. He was also associated with Mirae Asset Global Investment India Ltd in the Investment Department as the Head of Fixed Income for more than two years. Murthy holds a Master of Commerce degree and has completed his PGDBA from Somaiya Institute of Management & Research.

Investment philosophy

“The core strength of the company stems from its intellectual capital and its robust risk management framework based on in-built controls and balances. The Tata Asset Management philosophy is centred on seeking consistent, long-term results. The aim is overall excellence, within the framework of transparent and rigorous risk controls.”

This information is available from the company’s website however from information collected from various other media we can say that they follow a top-down approach to investing.

Media

Rahul Singh of Tata Mutual Fund shares his approach to the market – CNBC TV18 on 8th April 2022

In an interview with cnbc tv18 Rahul talks about increasing margin pressure due to commodity inflation and fear of interest rate hike which will keep the markets range bound on the index. This shows that he follows a top-down approach to investing. 

Post Budget Commentary by Murthy Nagarajan, head of fixed income – Investment Guru India on 3rd Feb 2022

Post the union budget Murthy Nagarajan talks about how the government has clearly shown its objective which is growth by increasing the capex targets. It is focusing on growth for which they are ready to take short term pain in the form of higher fiscal deficit. Due to the huge borrowing program interest rates are going to go up in short term debt. The yield curve has spiked by 25 bps after the budget and expectation is it will go up further. Short term or money market products are very attractive to invest in this scenario.

Budget 2022, must focus on execution of elements of last year’s budget: Rahul Singh, CIO-Equities, Tata Mutual Fund – moneycontrol – 26th Jan 2022

https://www.moneycontrol.com/news/business/budget-2022-must-focus-on-execution-of-elements-of-last-years-budget-rahul-singh-cio-equities-tata-mutual-fund-7988381.html

 The attempt to revive the investment cycle is much needed to sustain GDP growth at a higher trajectory of 7 percent and Singh believes that early signs of investment revival in the private sector are visible.

A shift towards an accommodative fiscal policy, in addition to a monetary policy, is critical especially if the thrust of the additional spending continues to be on capital account rather than revenue expenditure. Given the strong economic recovery, which has resulted in robust revenue collections, Singh thinks that government has enough elbow room to provide for higher capex growth and social sector spending like employment guarantee and cash transfer schemes.

Analyst questions

Why is that in 25 years your aum is only 84000 crores approx. whereas at the same time other fund houses have much higher aum?

 Why do you have so many equity and debt schemes?

What is the investment philosophy of the company as a whole and how do you ensure it is ingrained in the people managing investments?

Can you share what exactly is your risk management framework?

How do you value these new age digital companies which are loss making but have huge investment opportunities both from an investor perspective and fund manager?

How do you manage the margin of safety as a fund house?

Prepared by Rahul Sharma, May 2022

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