Anand Rathi MNC
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Anand Rathi MNC
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
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View on the Fund
This is not a recommended fund, primarily because the AMC does not meet our selection criteria. We believe that there are better fund houses to invest in, within the Indian fund universe.
Strategy
MNC Focused Thematic Portfolio
Fund's Strategy View
Anand Rathi's MNC Portfolio is a concentrated MNC-focused portfolio, that aims to invest in 15 - 20 MNC stocks (~50% into the large-cap). Sectorally well-diversified portfolio. The strategy aims to benefit from the advantage of MNC companies - successful business model, healthy balance sheet, strong corporate governance, higher return ratio and favourable risk-adjusted returns.
Fund Performance
The fund has underperformed peers & is amongst the worst performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance consistency has been mixed, with the fund having outperformed & underperformed the bechmark roughly in half the years.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Anand Rathi MNC | -0.8 | 9.8 | 11.7 | 10.4 |
| S&P BSE 500 | 6.5 | 15 | 15 | 14 |
| Alpha over Broad Mkt BM | -7.3 | -5.2 | -3.3 | -3.6 |
Performance as of: 31-Jan-26 | Inception Date: 28-Mar-18 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Mayur Shah | 3-star rated FM
Fund Manager | 21 yrs Experience | 19 yrs at current firm
Past Experience: AVP-PMS
Mr. Mayur Shah is Fund Manager for PMS's run at Anand Rathi, he has done post graduation in MBA Finance and CFP. He has more than 15 years of rich experience in Investment advisory, Product Development and Portfolio Management. He had Started Career with Kotak Securities Ltd in 2005 as an Investment Advisor subsequently got into developing Equity products and running the same. From last 13 years he is part of Anand Rathi group and worked across Portfolio Management and Private Client Group Equity Advisory.
IME's Review of Anand Rathi PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
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View on AMC
Anand Rathi has scaled meaningfully, and the presence of Mayur Shah, a homegrown fund manager, has brought greater stability to the team. However, his ownership stake in the AMC introduces uncertainty around potential churn. Additionally, the fund’s performance has been highly volatile. Given these factors, we do not recommend the strategy for investment at this time. Anand Rathi's core business remains wealth management and accordingly, we believe asset management credentials are not similar to that of pure fund-manager founded asset management firms.
AMC's Pedigree
Anand Rathi’s equity research capabilities are strong, and while their PMS business has scaled up well in recent years, it still represents a relatively small portion of the overall group.
AMC Team
Mayur Shah is an Anand Rathi vetran - having been with the group since 2007, with the PMS offerings since 2008 and heading Anand Rathi PMS since 2017. We appreciate the long-tenure of Mayur with the firm, but a lack of direct ownership in the firm is a bit of a concern. While we are unclear about the levels of ESOPs, shadow-ESOPs or profit-sharing structures that can keep him engaged longer-term, it is important to note that even shadow-participation is not the same as being a founder-manager firm.
Investment Philosophy
Anand Rathi PMS follows a 4-P Strategy for Stock Selection focusing on (a) Past Analysis (b) Present Analysis (c) Pedigree (d) Potential. The core focus on each of this is as follows - PAST analysis (business fundamentals & financials), PRESENT analysis (current fundamentals & financials vs past, valuations), PEDIGREE (Management quality & pedigree, governance), POTENTIAL (future growth potential).
PMS Background
Anand Rathi PMS is the PMS arm of the Anand Rathi group (an established and well-respected equity broker, with growing investment banking & wealth management businesses). Failed to scale itself in PMS Industry Anand Rathi's PMS arm has been around for many years but has not scaled itself yet.Experience the benefits of working with a 'research-first' investments firm
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