[04:30:24 PM] => Myiris : A very warm welcome to myiris chatmasala
[04:32:32 PM] => Myiris : Our guest for the day, Mr. Tridib Pathak, Fund Manager- Equity, IDBI-PRINCIPAL Asset Management Co. Ltd will be joining us shortly.

[04:32:44 PM] => DISCLAIMER :
[04:33:32 PM] => Mr. Tridib Pathak is the Fund Manager- Equity, IDBI-PRINCIPAL Asset Management Co. Ltd. At the time of this conversation / chat, Mr. Tridib Pathak may or may not have positions in the stocks mentioned below, although holdings may change at any time. The views expressed by Mr. Pathak is based upon information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such. Mr. Pathak, his company and its affiliates, officers, directors, partners, and employees may, from time to time, have long or short positions in, buy or sell and deal as principal in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed.

[04:34:02 PM] => None of the information contained herein constitutes, or is intended to constitute a recommendation of any particular security or trading strategy or a determination that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. You should consult with and rely upon your own advisors whether and how to use such information in making any investment decision.

[04:34:48 PM] => Lastly the views expressed by Mr. Pathak have no bearing whatsoever with that of IRIS Ltd. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website www.myiris.com.

[04:35:06 PM] => Welcome to the chat session Mr. Pathak.

[04:36:20 PM] => Rakesh Nehra: What would be an ideal asset allocation for an investor?
[04:37:46 PM] => TP : There is no ideal asset allocation, since it is different from one individual to another. Asset allocation differs from each individual based on various factors such as � the age of the investor, risk profile of the investor, return expectations of the investor and overall investment objectives/goals. Please refer to sections on asset allocation and planning guide on our website www.idbiprincipal.com which help an investor define his asset allocation.

[04:39:14 PM] => GladwinM: Could you elaborate on your investment philosophy? What about IDBI Equity fund?
[04:40:04 PM] => TP : Simply put, our investment philosophy is to identify and benefit from gaps in share prices and share values. There a 3 important aspects to our investment philosophy:
[04:41:20 PM] => a) Consistency of performance. We strive to outperform the markets on a consistent basis across time horizons. We do not want to be top performers in this quarter/half year/year and be worst performers in the next quarter/half year/year. We would rather like to be in the top decile of performers all the time.
[04:42:32 PM] => b) Disciplined approach. We are not momentum driven. Our investments are made after a due process and based on a fundamental evaluation of investment alternatives using our in-house research team.
[04:43:16 PM] => c) Appropriate risk management. We are risk aware, not risk averse. We manage risks so that we can deliver consistent performance. For e.g we strive to achieve a proper balance concentration risk and diversification risk in our portfolio.
[04:43:45 PM] => I manage the Growth Fund (a diversified equity fund, launched last year as a part of our Future Goal Series) and the Tax Savings Fund (an Equity Fund with ELSS Tax benefits). Presume your question is with respect to Growth Fund. Our Growth Fund has outperformed the markets across all time horizons.

[04:46:14 PM] => Nissar K: Do you think the ongoing Afghan war will have a long-term impact on the markets?
[04:47:59 PM] => TP : Much depends on extent and nature of a resolution of the war on terrorism. Surely globalization and World Trade are the major losers in case there is a prolonged crisis. In such instances and in instances of a global recession, the risks are lower for nations which have lesser leverage to world economy and which have a strong domestic economy.

[04:48:49 PM] => Harimohan: When you are benchmarking against the markets, and when suddenly everything goes down, do you revise your targets? Or try to maintain the same levels?
[04:50:07 PM] => TP : We are benchmarked against the markets all the time on a rolling basis with a minimum investment horizon of 12 months. Our stock/sector weights are based on expectations of outperforming the markets, whether on the downside or the upside.

[04:51:06 PM] => Balram Jain: Is there a good method of identifying quality equity funds? Or is it a matter of luck?!!
[04:54:13 PM] => TP : Quality equity funds provide consistent outperformance to markets. Watch the investment philosophy of the fund and the Portfolio.

[04:54:41 PM] => Sanjayn: Please give me one good pick each from Pharma and FMCG?
[04:55:02 PM] => TP : Request you to check our portfolio at our website www.idbiprincipal.com.

[04:56:00 PM] => Raghu: Sir, I invested with a lot of hope in a private sector IT fund. Now it has gone to dogs. Should I get out or take a long -term view and wait?
[04:58:36 PM] => TP : Sector Funds have a higher risk profile than Diversified Equity Funds, at all times. Current times are good for long term investments in equities as a class of asset. Whether you remain invested in sector funds or not, once again depends on your risk profile.

[05:01:43 PM] => Reddy G: How would you compare the performance of your funds? Do you have any internal benchmarking system in place?
[05:02:07 PM] => TP : We are benchmarked against the S&P Nifty.

[05:03:38 PM] => Guest: What do you think for the market in a one-month horizon?
[05:04:35 PM] => TP : We think that one cannot call the markets on short time horizons. We are bullish on the markets with a time horizon of more than a year.

[05:05:08 PM] => Ram34 : When do you feel the current down turn would change?
[05:05:54 PM] => TP : We are not market timers. In any case, it is always very difficult to time the market.

[05:07:27 PM] => Mitra : Which sector do you think will do well in the foreseeable future?
[05:08:47 PM] => TP : We are overweight Pharma, FMCG, Oil and Media sectors.

[05:09:27 PM] => Murali : What are the target returns that you are aiming for in both IDBI Equity and Index funds? The figures are not very encouraging so far.
[05:11:49 PM] => TP : In actively managed funds, the target is to outperform the markets across all time horizons. Index Funds, by their definition, perform with the markets sans a tracking deviation. Our Growth Fund has outperformed the markets across time horizons. We have the lowest tracking deviation in our index fund.

[05:12:07 PM] => AJ : Any new funds that IDBI is thinking of coming out with?
[05:14:03 PM] => TP : No new funds in the immediate future.

[05:14:52 PM] => Murali : Do you see the interest rates coming down any further?
[05:18:36 PM] => TP : We expect a flattish trend going forward. Any chances of a further softening of interest rates may be nullified by an industrial and economic recovery in 2H.

[05:19:01 PM] => Uma Dutt : Despite the tech downturn, Fund Managers still seems to have a good opinion about the big boys like Infy and Wipro. Is it justified?
[05:20:15 PM] => TP : We think that only the top 4-5 companies have the best chance of further benefiting from India�s competitive ability in software services, especially offshore services. These companies have the critical mass, relationships, track record and successful offshore delivery models.

[05:21:45 PM] => Suryaprakash : Sir, Why is it that you are heavily into old economy scrips? Have you lost faith in the new economy?!!
[05:22:33 PM] => TP : We believe in a well-diversified portfolio. There is only one economy, the so-called new economy is based on the same tenets as seen in the so-called old economy.

[05:23:36 PM] => Guest: What's the wisest course to take in a recession? Do I get out of the markets or buy up?
[05:24:19 PM] => TP : India is still not in a recession, what we are experiencing is a slow down. May be the U.S. economy and the Global economy are in a recession. In fact India�s strength is that it is a domestic economy with a lower leverage to the world & U.S economy as seen in our low export/GDP ratio.
[05:24:48 PM] => Anyway, recessions and slow downs have always ultimately proven to be good times to invest in equities but with a longer time horizon of not less than a year.

[05:26:13 PM] => Malhotra : Sir, Do you comment on specific stocks? Tell me about Silverline?
[05:26:28 PM] => TP : As a policy, we do not comment on specific stocks.

[05:26:48 PM] => Prabhakar: Which are the sectors that you are bullish about and where are you bearish?
[05:27:30 PM] => TP : We are overweight Pharma, Oil, Banking, FMCG and Media sectors. We are underweight domestic and industrial cyclical sectors.

[05:28:06 PM] => Raghu : Dear Sir, What do you think of the markets in general? I think fund managers should be more active and come out and educate investors so that there's a greater mobilization of economy.
[05:28:40 PM] => TP : Equity markets, we think, are at extremely attractive levels and we certainly think that these are the times to invest in equities with a minimum one-year horizon. Valuations are at 8-9 year lows. Indian markets valuations are very attractive relative to most emerging markets. Being a domestic economy, India�s macro fundamentals are relatively better off. We are hopeful of a second-half recovery led by rural demand.
[05:29:17 PM] => Sentiment in the markets is bad. While last year - 2000 we saw greed, we are now seeing fear. Investing in such times always pays off in the long run. Also, liquidity position in the financial system is benign. FII inflows continue to be positive and may well continue to be positive given India�s relative attractiveness in the emerging market universe.

[05:29:51 PM] => Ranvir : Where do you see the IT stocks and BSE sensex by March 2002?
[05:30:22 PM] => TP : We think that one cannot call the markets on short time horizons. Our positive stance on the markets on longer horizon is explained earlier.

[05:31:36 PM] => Gomez: Does balanced funds offer the best option to the investors?
[05:32:24 PM] => TP : Please refer to our discussion on Asset allocation and our website for Planning Guides. As is obvious, Balanced Funds carry a higher risk/return profile than Income Funds and a lower risk/return profile than Equity Funds.

[05:32:58 PM] => Nirmal: Do you think the auto sector will do well? Most of the funds seem to be investing heavily in the sector?
[05:34:03 PM] => TP : We are underweight the Auto sector. Barring cyclical upswings, we think companies in the industry are facing severe competitive pressures. The Recent high growth rates of 2-wheelers sales may not be sustainable.

[05:34:29 PM] => Avinash_M: Do you see a reversal in fortune for the tech sector?
[05:35:26 PM] => TP : We think that only the top 4 - 5 companies have the best chance of further benefiting from India�s competitive ability in software services, especially offshore services. These companies have the critical mass, relationships, track record and successful offshore delivery models. But the high growth rates of the past, may be difficult to replicate.

[05:36:46 PM] => Rajesh _C : What's the hope for small investors like me, when apart from all too brief periods of earnings, the markets seem to be in a permanent state of manipulation?
[05:37:29 PM] => TP : Over the last few years, a lot of systemic reforms have been carried out in the stock market - online trading, demat, mutual funds , rolling settlements etc. which work for the advantage of the small investor and reduce the scope of manipulation. For our views on the market, refer earlier questions.

[05:37:54 PM] => Nilesh : Sir, What's you outlook on cement and media?
[05:38:50 PM] => TP : We are underweight the cement sector. Alleged cartelisation/ price understanding in the cement industry is a sign of weakness not strength. The moment demand growth picks up and the underlying fundamentals look good, we think that price understandings could break. The cement industry does not have a good track record of profitable operations i.e. returning their cost of capital.
[05:39:09 PM] => We are overweight the media sector. We like diversified and multiple revenue stream stories in the media sector.

[05:40:10 PM] => KP : What is the future of mutual fund industry in India?
[05:41:03 PM] => TP : The mutual fund industry is just at the nascent stage and holds a bright future. Investor awareness/education and right selling of mutual fund concepts by the industry will go a long way in promoting the industry.

[05:42:57 PM] => Shamim : I wish to invest in shares. Please suggest ideal ones.
[05:43:21 PM] => TP : Please invest in mutual funds. For individual investors who do not have the ability and resources to study companies and stock markets, mutual funds are the best vehicle.

[05:43:53 PM] => Ravi Kannan : What'll be the effect of F&Os in the Indian markets?
[05:44:26 PM] => TP : Will over time, give the much required depth and liquidity to the markets.

[05:44:38 PM] => Puneet: What is your view on the ICE sector in the coming months?
[05:44:48 PM] => TP : Already answered.

[05:45:10 PM] => Vinoo: Sir, Do you think index funds are a good idea at times like these?
[05:45:40 PM] => TP : Within equity funds, Index Funds are lower risk and lower cost investments. Equity markets are attractively poised for investors who have at least a one-year�s outlook.

[05:46:14 PM] => Manoj Kumar : What is the reason that investors prefer private sector mutual fund as compared to public sector mutual fund? Is it general lack of faith in those institutions?
[05:47:15 PM] => TP : Some factors that one should consider before investing in a mutual fund are - investment philosophy, track record, expertise and standing of its sponsors.

[05:48:04 PM] => Mangesh_G : Are looking at new ways in terms of distribution of funds?
[05:48:42 PM] => TP : IDBI-Principal has pioneered the use of Post Offices as a distribution vehicle via its tie-up with India Posts early this year. We will keep looking for more innovative methods of reaching prospective investors be it retail or corporate.

[05:49:37 PM] => Jayesh Seth : What factors do you look at while selecting scrips? Do fund managers take a short-term view on some stocks?
[05:50:33 PM] => TP : We look at 3 factors - a) Business Franchise, b) Management Quality and c) Valuations. We do not take short-term views on stocks.

[05:51:14 PM] => Robin-S : I shall like to know about the future plan of your fund?
[05:51:45 PM] => TP : Further deepen the mutual fund markets by leveraging on our existing innovative products such as asset allocation, triggers, SIPs etc.

[05:52:19 PM] => Harihar : What is your outlook for the tech sector for the next 6-months?
[05:52:38 PM] => TP : Answered earlier.

[05:53:04 PM] => Ayan : Sir, what is your view on market? Will pre Sept. 11 levels should be attained soon or will take time?
[05:53:17 PM] => TP : Answered earlier.

[05:54:37 PM] => GladwinM: Sir, As you said in your answer, having a disciplined investment philosophy, but don't you think that could lead to some pain if you miss out on a boom?
[05:55:15 PM] => TP : Disciplined approach actually helps to outperform markets across time horizons.

[05:56:02 PM] => Raghu : Sir, regarding sector funds, you said it depends on the risk profile, I as an investor is looking at a 2-year period. Do I still stay invested?
[05:56:56 PM] => TP : We are currently underweight the IT sector.

[05:57:19 PM] => Saji : Sir, what you think of new purchase of Zee?
[05:58:00 PM] => TP : As per our policy we do no comment on individual stocks.

[05:58:28 PM] => Saji : Sir, I what is your opinion about buying new shares of IPCA Laboratories?
[05:59:09 PM] => TP : As per our policy we do no comment on individual stocks.

[05:59:41 PM] => Myiris : That's the end of the chat session for today.

[06:01:05 PM] => Myiris : We thank you all for your participation
[06:02:28 PM] => Myiris : Thank you Mr. Tridib Pathak for making this an insightful and lively session.
[06:03:26 PM] => Myiris : That's all from us for today and we'll be back on Friday with more on myiris chatmasala.