Multi asset allocation is the way to go: Union AMC's Madhu Nair

livemint.com:

Subscribe to enjoy similar stories. Investing doesn't have to be complex or reliant on crystal-ball prediction, says Madhu Nair, the new CEO of Union Asset Management Co. Pvt.

Ltd (Union AMC), who stepped into the role in March. With a nearly 25-year track record across industry giants like HSBC, Kotak, and Invesco Mutual Fund, Nair is on a mission to simplify investing, cutting through market noise with a focus on long-term strategies that align with investor goals and risk tolerance. In a recent conversation with Mint, he shared Union AMC's vision of sustainable, steady returns over market speculation.

As the company rolls out its Union Multi Asset Allocation Fund and prepares for launches like quant-based and gold-focused investments, Nair is steering Union AMC toward a balanced, diversified approach tailored to withstand market turbulence. In the last six months, we have been focusing on launching products that aim to provide the right outcomes for investors while markets are volatile. It's very difficult to predict short-term outcomes in asset management business.

However, the leadership team at Union AMC has experienced multiple market cycles, including the tech meltdown, the global financial crisis, and the mid-cap and small-cap cycles in 2017. This collective experience has helped us make informed decisions. For example, in August 2024, we launched our multi-asset fund.

During that time, many thematic new fund offers (NFOs) were garnering a lot of money. But we decided to focus on asset allocation instead, as we felt that valuations were looking stretched, especially in certain pockets. We emphasised the importance of asset allocation, which is often an underrated strategy, as investors tend to be swayed by