India's Best Fund Managers 2017

"Focus on protecting the downside to generate superior returns"

Pankaj Tibrewal on the secret sauce for investing in mid-caps

Soumik Kar

Permanent loss of capital is a thought that always keeps Pankaj Tibrewal on the edge. It’s not without reason, for the fund manager manages assets worth Rs.2,329 crore across mid-cap, emerging and balance equity funds at Kotak Mutual Fund. While the 38-year-old knows the importance of protecting the downside when it comes to investing, it has in no manner hampered his return scorecard. Tibrewal’s mid-cap fund has clocked a 44.32% annualised return over the past one year and 35.72% over the past three years. In comparison, the Kotak Emerging Equity Fund, which focuses more on smaller companies, has yielded a much better return — generating close to 46.95% annualised over the past one year and 40.13% annualised over the past three years. Tibrewal’s funds have significantly outperformed the benchmark indices like the S&P BSE Mid-Small Cap Index, which has given a return of 39.48% in the past one year and 27.83% over the past three years. In an interview with Outlook Business, Tibrewal speaks about his investing style and where the opportunity lies in the mid-cap space.