Janak Dynamic Investment
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Janak Dynamic Investment
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
With a 20-year track record of consistent performance, This strategy presents a reliable investment option.
Strategy
Combined Approach
Fund's Strategy View
It follows a bottom-up approach and utilizes a combination of pre-determined investment strategies, including Value, Aggressive Growth, and Special Situations. They are market-cap agnostic and have a clear and defined criteria for stock selection, ensuring a disciplined and strategic investment process.
Fund Performance
The fund has outperformed peers & is amongst the top performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Janak Dynamic Investment | 4 | 24 | 33.7 | 19.1 |
| S&P BSE 500 | 6.5 | 15 | 15 | 14.3 |
| Alpha over Broad Mkt BM | -2.5 | 9 | 18.7 | 4.8 |
Performance as of: 31-Jan-26 | Inception Date: 01-Jun-05 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Janak Merchant | 4-star rated FM
Founder | 51 yrs Experience | 21 yrs at current firm
Janak Merchant brings 50 years of experience in stock-broking and investment banking. He played a pivotal role in founding the Pune Stock Exchange in 1983 and has witnessed and contributed to the transformation of Indian financial markets. He has been instrumental in evolving the business from stock broking to asset management.
Jaideep Merchant | 3-star rated FM
CIO | 27 yrs Experience | 21 yrs at current firm
Jaideep Merchant, a Chartered Accountant and CFA Charterholder, has 25 years of experience in fund management and equity research. Since 2005, he has been successfully managing client portfolios at Janak Merchant Securities.
IME's Review of Janak PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
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View on AMC
Janak PMS can be considered for investment. With a strong 20-year track record, they have demonstrated resilience and consistency in the market, making them a reliable option for long-term investors.
AMC's Pedigree
Janak AMC's PMS arm has been operational for over 20 years, establishing a solid track record and demonstrating its credibility in the market. Backed by extensive experience across financial services such as investment banking and mutual fund advisory, the firm has positioned itself as a seasoned and reliable player in the financial space.
AMC Team
Janak PMS is led by Jaideep Merchant as its CIO, bringing over 25 years of extensive experience in the investment space. As a key figure, he has been integral to the PMS since its inception.
Investment Philosophy
While their investment philosophy appears generic, we appreciate the detailed explanation and the consistent execution they have demonstrated over the past 20 years.
AMC Background
Janak PMS is a Pune-based PMS firm with roots in Indian equity markets stretching back to the 1970s. Founded by Janak Merchant with the objective of fostering an equity investment culture in Pune, the firm was instrumental in establishing the Pune Stock Exchange in 1983. Its early years were spent as a traditional stock-broking and investment banking business, navigating multiple market upheavals including the 1992 market bubble, the NBFC crisis, and the UTI-64 episode. This long operating history across adverse market environments has shaped the firm’s deeply conservative, risk-aware investment culture.
The firm transitioned decisively from a transaction-oriented broking model to an asset management-led approach in 2005, recognising the inherent conflict between transaction revenues and long-term wealth creation. This shift marked the launch of its Portfolio Management Services, with a singular focus on patient, low-churn, long-duration equity investing. The second generation joined in 1999, with Jaideep Merchant - Chartered Accountant and CFA charterholder - now serving as Founder and Chief Investment Officer. Under his leadership, Janak PMS has evolved into a tightly run boutique managing multi-generational family wealth, with several client relationships spanning three generations.
Investment Philosophy
A core tenet of the philosophy is patience in both deployment and ownership. Janak does not feel compelled to remain fully invested at all times and is willing to hold cash until prices adequately reflect business risk. Illiquidity is viewed as both a risk and an opportunity - while illiquid stocks can experience sharp drawdowns in bear markets, they can also offer significant valuation discounts. The firm selectively invests in such opportunities when valuations are compelling, while avoiding excessive leverage and eschewing derivatives entirely.
Stock Selection Framework
Stock selection at Janak PMS is guided by a structured yet judgment-driven framework that emphasises business fundamentals, valuation asymmetry, and independent thinking:
- Preference for companies where the size of the long-term opportunity is meaningfully larger than the current market capitalisation.
- Ground-up understanding of industries, built from operational and industry-level analysis rather than top-down narratives.
- Greater reliance on annual reports, financial statements, and disclosures over frequent management meetings.
- Identification of opportunities arising from evolving regulatory environments that can structurally benefit certain industries over the long term.
- Extensive use of scuttlebutt and inputs from industry experts, bankers, competitors, and customers to validate business realities.
- Willingness to invest in cyclical earnings businesses where institutional investors typically avoid exposure, provided downside risks are understood.
- Strong preference for companies with high operating cash flow generation and disciplined capital allocation.
- Close evaluation of management changes as potential inflection points in business performance or governance.
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