‘We look at a stock’s 10-year history’

Vetri Subramaniam, group president and head of equity at UTI Asset Management Company, is in charge of research and fund management of equity schemes at UTI Mutual Fund.

Subramaniam, who joined UTI in January last year from Invesco Asset Management (India) where he was CIO and fund manager, manages UTI Long Term Equity Fund (Tax Saving) and UTI Opportunities Fund.

Before joining Ivesco in June 2008, Subramaniam had a stint at Motilal Oswal as chief investment officer. Prior to that he was partner at UK-based fund, Capris Investment. He also worked with Kotak Mahindra Asset Management Company, Sharekhan.com, SSKI Securities and Kotak Mahindra Finance in his over 25-year career. He holds a PGDM in finance from the Indian Institute of Management-Ban-galore.

Investment strategy

Subramaniam, who started out in 1992, has the benefit of traversing many market cycles over the years. While trying to pick sound businesses for investment, he tries to understand, through research, whether the management claims make sense when tested against management communications and data in the past. He also believes in putting together a diverse team of analysts that will throw up a variety of questions, so the understanding of risk is better.

Subramaniam also leans on his past experiences to deliver the goods as a fund manager. As an investor, one has to understand and appreciate the art of thinking probabilistically, he says. A set of events can lead to outcome A and another set of events can lead to outcome B, which has to be understood while investing, he says.

Subramaniam believes in picking stocks rather than sectors, going by his recent articulation of views on the market. He also feels the Indian market is not cheap despite a 10 per cent correction that it witnessed in recent months. According to him, some stocks may have corrected sharply but correction in the broader market has not been deep enough.

He is also cautious about earnings growth as higher growth would appear, according to him, due to the base effect more than a significant acceleration in economic growth.