IIML_Newsx

7/29/2019 IIML_Newsx

1/10

27/06/2013 Young IIM g raduates' fund g ives record fat returns : Mutual Fund, News - India Today

indiatoday.intoday.in/story/young-iim-graduates-mutual-fund-gives-record-fat-returns/1/132435.html 1/10

INDIA TODAY GROUP : India Today Aaj Tak He adline s Today Bus ine ss Today M en's He alth Wonde r Wo

Updated 01:40 IST | June 27, 2013

In Association With

BUSINESS INDIA | M UTUAL FUND | WORLD | INFOTECH | MARKET

India Today / Business / Mutual Fund / Story

B.S. SRINIVASALU REDDY MUMBAI, MARCH 15, 2011 | UPDATED 10:45 IST

Young IIM graduates' fund gives recordfat returns

At a time when many seasoned mutual fund (MF) managers are failing to give returns matching that of

their fund's benchmark, students of the youngest Indian Institutes of Management (IIM) in the country -

IIM-Lucknow - have given alpha (market beating) returns.

What's more, this rare feat was repeated by the students for four years in a row as part of their practical

learning process, despite the limitations of lack of realtime data streams.

The equity fund for the batch 2009-11 (beginning July 2007, the fund was closed in January 2011) has

contributed an impressive 17.96 per cent return, while the derivatives fund gave a huge return of 25.84

per cent. T hese compare excellently with the National Stock Exchange index (NSE) Nifty's returns of just

5.56 per cent during the same period.

A corpus ofover Rs4 lakhwas built with the class of2009-11 contributing a minimumRs5,000 and up to a

maximum ofRs50,000.

Responding to a query, a senior MF industry captain said one has to obtain a certificate and register

oneself to sell a MF scheme, but virtually anyone can become a fund manager without any of these

hurdles.

That is the state of regulations in the country.

"A study of profile and background of fund managers, who are managing public funds, would reveal

astounding diversity in experience, education and background," the same source added.

On the other hand, selection as the fund manager of Credence Capital, the fund managing committee, was

no walkover as they had to go through the grind of managing a notional fund, and outperforming the rest

of the students before being selected as one of the five fund managers for Credence.

HomeHome NewsNews IndiaIndia VideosVideos PhotosPhotos CricketCricket MoviesMovies SportSport LifestyleLifestyle EventsEvents SupplSuppl

Check O
http://businesstoday.intoday.in/bt/story/association-of-mutual-funds-in-india-appoints-hdfc-mfs-milind-barve-as-chairman-sundeep-sikka-as-vice-chairman/1/13727.htmlhttp://indiatoday.intoday.in/http://indiatoday.intoday.in/news.htmlhttp://indiatoday.intoday.in/news.htmlhttp://indiatoday.intoday.in/section/114/1/india.htmlhttp://indiatoday.intoday.in/news.htmlhttp://indiatoday.intoday.in/section/114/1/india.htmlhttp://indiatoday.intoday.in/videoshttp://indiatoday.intoday.in/gallerieshttp://indiatoday.intoday.in/section/214/1/cricket.htmlhttp://indiatoday.intoday.in/section/67/1/movies.htmlhttp://indiatoday.intoday.in/section/84/1/sports.htmlhttp://indiatoday.intoday.in/section/103/1/lifestyle.htmlhttp://indiatoday.intoday.in/#http://indiatoday.intoday.in/#http://indiatoday.intoday.in/#http://www.headlinestoday.in/http://www.headlinestoday.in/http://www.headlinestoday.in/http://indiatoday.intoday.in/http://indiatoday.intoday.in/http://indiatoday.intoday.in/http://indiatoday.intoday.in/video/vidya-shows-off-her-dirty-moves-to-super-moms/1/285201.htmlhttp://indiatoday.intoday.in/story/i-am-a-bad-husband-dhanush/1/285242.htmlhttp://indiatoday.intoday.in/#http://indiatoday.intoday.in/section/103/1/lifestyle.htmlhttp://indiatoday.intoday.in/section/84/1/sports.htmlhttp://indiatoday.intoday.in/section/67/1/movies.htmlhttp://indiatoday.intoday.in/section/214/1/cricket.htmlhttp://indiatoday.intoday.in/gallerieshttp://indiatoday.intoday.in/videoshttp://indiatoday.intoday.in/section/114/1/india.htmlhttp://indiatoday.intoday.in/news.htmlhttp://indiatoday.intoday.in/http://businesstoday.intoday.in/bt/story/mutual-fund-plans-for-children/1/12683.htmlhttp://businesstoday.intoday.in/bt/story/association-of-mutual-funds-in-india-appoints-hdfc-mfs-milind-barve-as-chairman-sundeep-sikka-as-vice-chairman/1/13727.htmlhttp://indiatoday.intoday.in/category/mutual-fund/1/191.htmlhttp://indiatoday.intoday.in/section/110/1/business.htmlhttp://indiatoday.intoday.in/http://indiatoday.intoday.in/category/market/1/189.htmlhttp://indiatoday.intoday.in/category/infotech/1/190.htmlhttp://indiatoday.intoday.in/category/world/1/187.htmlhttp://indiatoday.intoday.in/category/mutual-fund/1/191.htmlhttp://indiatoday.intoday.in/category/india/1/186.htmlhttp://indiatoday.intoday.in/http://www.headlinestoday.in/http://www.aajtak.in/http://indiatoday.intoday.in/http://www.businesstoday.in/http://mailtoday.in/http://www.wonderwoman.in/http://www.menshealthindia.in/http://www.businesstoday.in/http://www.headlinestoday.in/http://www.aajtak.in/http://www.indiatoday.in/http://indiatodaygroup.com/


2/10



TweetTweet 0 0

CLICK HERE FOR MORE NEWS

The effort by the students of IIM-Lucknow is purely a student initiative in which the institution is not

directly involved. The system was introduced after the institute's faculty realised that making them

manage public money and doses of theory could mould students into excellent fund managers. IIM

professors, Vipul and Manoj Anand, guided the process.

"A committee of twelve students, including seven seniors, was formed for managing the fund. We had an

exciting process in which heated debates were commonplace.

But consensus was arrived at based on majority opinion," said Navin Prasad of the Credence Fund

Managers, or the committee.

"More than profit maximisation it was risk management and preservation of capital that were the keys. It

is not that they always made money. Strict stoplosses were crucial to success," said Prasad. The fund

managers of Credence Capital applied both fundamental and technical analysis to build the portfolio.

The students followed a systematic procedure involving selection of fund managers, appointment of a

committee to approve investment decisions, updating student investors on the past week's developmentsand expectations for the next week.

Credence is no run-of-the-mill kitty corpus, but a stickler to rules. It posted newsletters providing a

summary of the happening of the past week and expectations for the coming week. T he newsletter also

analysed futures and options (F& O) data and gleanings were emailed to all investors, every week.

"The challenge was to do all the analysis based on publicly available data. We did not have any data

streams like Bloomberg or Reuters, used in mutual funds or treasuries," said Rahul Krishna, who was one

of the leaders of the team.

Krishna, who had some prior experience of working in a treasury before boarding the management

bandwagon, said, "In fact, we are spending 60 per cent of our time in management of the fund and only 40

per cent on studies." No wonder, many of these aces have been offered positions at global financial sector

biggies like Goldman Sachs, Citigroup and JP Morgan.

Courtesy:Mail Today

Recommend 0

Post com m ent s on t hi s story

Post t o Face book
http://www.mailtoday.in/http://indiatoday.intoday.in/news.htmlhttp://syndicationstoday.com/syndicationstoday/validate.jsp?aid=132435&sid=1&article=%27young-iim-graduates%C3%A2%C2%80%C2%99-mutual-fund-gives-record-fat-returns%27&byline=%27B.S.+Srinivasalu+Reddy%27&idate=2011-03-15http://www.addthis.com/bookmark.php?v=20http://twitter.com/search?q=http%3A%2F%2Findiatoday.intoday.in%2Fstory%2Fyoung-iim-graduates%C3%A2%C2%80%C2%99-mutual-fund-gives-record-fat-returns%2F1%2F132435.htmlhttps://twitter.com/intent/tweet?original_referer=http%3A%2F%2Findiatoday.intoday.in%2Fstory%2Fyoung-iim-graduates%25E2%2580%2599-mutual-fund-gives-record-fat-returns%2F1%2F132435.html&source=tweetbutton&text=Young%20IIM%20graduates%27%20fund%20gives%20record%20fat%20returns%20-%20India%20Today&url=http%3A%2F%2Findiatoday.intoday.in%2Fstory%2Fyoung-iim-graduates%C3%A2%C2%80%C2%99-mutual-fund-gives-record-fat-returns%2F1%2F132435.html&via=indiatodayhttp://indiatoday.intoday.in/story/young-iim-graduates%C3%A2%C2%80%C2%99-mutual-fund-gives-record-fat-returns/1/132435.html#comment


3/10



TOP STORIES FROM MUTUAL FUND

Coal power remains vital in 12th plan

IIM grads' fund gives record returns

MFs bull ish on real ty stocks

TOP STORIES

Mass cremations begin, 7,500 still await evacuation

from Uttarakhand

Cong, TDP leaders exchange blows at Dehradun

airport over Uttarakhand relief work

Superstition or co-incidence? Locals believe Kali

avtaar Dhari Devi unleashed the floods for revenge

Please Login or Fill Th ese Fields

Na m e: E-m a il: En ter th e Code Sh ow n :

POST COMMENTS

Sign inSign in Sign inSign in Sign in w ith LinkedInSign in with LinkedIn
http://indiatoday.intoday.in/story/dhari-devi-unleashed-the-floods-for-revenge/1/285473.htmlhttp://indiatoday.intoday.in/story/uttarakhand-relief-work-congress-tdp-spar-dehradun-airport/1/285440.htmlhttp://indiatoday.intoday.in/story/mass-cremation-uttarakhand-floods-rescue-operations/1/285458.htmlhttp://indiatoday.intoday.in/story/MFs+bullish+on+realty+stocks/1/56890.htmlhttp://indiatoday.intoday.in/story/young-iim-graduates%C3%A2%E2%82%AC%E2%84%A2-mutual-fund-gives-record-fat-returns/1/132435.htmlhttp://indiatoday.intoday.in/story/12th-plan-thrust-stays-on-coal-thermal-power-plants/1/136104.htmlhttp://indiatoday.intoday.in/category/mutual-fund/1/191.html


4/10




5/10




6/10




7/10




8/10




9/10




10/10


i di d i d i / / ii d l f d i d f /1/13243 h l 10/10

Home News India Videos Photos Movies Sport Lifestyle Supplements Magazine

Web: InToday Publications: India Today | India Today - Hindi | Business Today | Cosmopolitan | Men's Health | WonderHousekeeping | Travel Plus | Golf Digest India | Design Today | Time | Harvard Business Review | Gadgets & Gizmos Tele

Education: Vasant Valley | Online Courses | U Learn Today | India Today Education Online Shopping: Bag It Today | India

| India Today Woman's Summit | India Today Youth Summit | State Of The States Conclave | India Today Education Summit Musi

Today Classifieds: B2B Marketplace Useful Links : Partners | Press Releases Syndic

ABOUT US CONTACT US ADVERTISE WITH US SUBSCRIPTION WE CCopyright 2013 Living Media India Limited. For reprint rights: Syndications
http://www.syndicationstoday.com/http://www.wecare24x7.in/http://www.indiatoday.com/itoday/intlsubscription/itsubs/itsubstop2.html?http://media2.intoday.in/microsites/common/common_it_footer.html#http://www.indiatodaygroup.com/new-site/publications/ite.htmlhttp://www.indiatodaygroup.com/new-site/index.htmlhttp://indiatoday.intoday.in/prnewswire/index.jsphttp://indiatoday.intoday.in/site/partners.jsphttp://www.indiabizsource.com/http://www.caretoday.in/http://indiatoday.intoday.in/educationsummit/http://indiatoday.intoday.in/state-of-the-states/http://www.indiatoday.in/youthsummithttp://indiatoday.in/womansummit/index.phphttp://www.indiatodaydiaries.com/http://www.bagittoday.com/http://education.intoday.in/http://ulearntoday.com/http://learntoday.in/http://www.vasantvalley.org/vasantvalley/default.shtmlhttp://www.gadgetsngizmos.in/http://www.hbrsasia.org/http://subscriptions.digitaltoday.in/subscriptions/time/subscription.htmlhttp://specials.indiatoday.com/design/issue.htmlhttp://www.golfdigestindia.com/http://travelplus.in/http://www.indiatodaygroup.com/goodhouse/issue.htmlhttp://www.wonderwoman.in/http://menshealth.intoday.in/menshealth/index.jsphttp://cosmo.intoday.in/cosmopolitan/index.jsphttp://businesstoday.intoday.in/http://subscriptions.intoday.in/subscriptions/itoday/ith_offer.jsp?source=websitehttp://indiatoday.intoday.in/http://www.intoday.in/http://indiatoday.intoday.in/calendar/0/2012/magazine.htmlhttp://indiatoday.intoday.in/section/20/1/supplements.htmlhttp://indiatoday.intoday.in/section/103/1/lifestyle.htmlhttp://indiatoday.intoday.in/section/84/1/sports.htmlhttp://indiatoday.intoday.in/section/67/1/movies.htmlhttp://indiatoday.intoday.in/gallerieshttp://indiatoday.intoday.in/videoshttp://indiatoday.intoday.in/section/114/1/india.htmlhttp://indiatoday.intoday.in/news.htmlhttp://indiatoday.intoday.in/

Documents

IIML_Newsx