A college contest won this fund manager Rs 1 lakh cash prize and a career in mutual funds

On the occasion of International Women’s Day 2024, Moneycontrol Personal Finance showcases five women fund managers, who have broken barriers in the Rs 50 trillion, male-dominated Indian Mutual Fund industry.

A chance encounter with – and perhaps a spur-of-the-moment decision by – the former Chairman and Managing Director of UTI Mutual Fund UK Sinha at an inter-collegiate competition in 2006 kickstarted Cheenu Gupta’s career in the Indian mutual funds industry. Gupta was pursuing her postgraduate course in business management at SP Jain Institute of Management in Mumbai at the time. In her final year, just after her exams were over, she entered a contest where she and her classmate were to give a presentation.

She and her friend were to go to their hometowns, but stayed back, enticed by the prize money of Rs 1 lakh. They won. When Sinha came on stage to hand them the trophy and cheque, young exuberant students in the crowd kept asking, “What more, what more?”. Sinha then threw a pleasant surprise, “Of course, we will be offering them positions in our company (UTI Asset Management Co Ltd).” And as it happened, after her graduation, Gupta started working at UTI MF as a research analyst, and there was no turning back.

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Today, nearly 18 years later, Gupta is a senior equity fund manager managing assets worth Rs 39,319 crore at HSBC India Mutual Fund, India’s 14th largest fund house.

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By winning the college competition and securing a job at one of the largest MF houses then, Gupta put behind a sour episode that occurred during the placements season, just a month or so earlier. Another mutual fund house had come to recruit students and Gupta had applied. When the MF chose one person —a boy — Gupta and a few other hopefuls inquired why they were not selected.

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The company representative told them they wanted men, not women. Gupta was told that the language used in the research corners was often “unparliamentary and women might not be able to take it”.

Was that the reality though, once she joined the workforce? “I have never encountered a biased mindset after that incident in college, during the placements season,” says Gupta.

Women’s Day: Cheenu Gupta, SVP Fund Management, Equities, HSBC India Mutual Fund

Are women fund managers better than men?

Although Gupta says there’s not much to differentiate between male and female fund managers, women bring a bit more rigour, she says. “It is very person-specific though; nothing gender-specific,” she adds. Gupta points out that while men like to work in isolation, or more independently, women like to work with teams.

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“When I am researching a particular stock, I would love to have my research analyst’s opinion too. If I come to know something of any company or industry, I would like to share it with my research analysts,” she says.

Another interesting difference between the working styles of men and women, she says, is the ability to bring perspectives to the table. Gupta gives an example of the fashion industry, that of clothing brands in particular and consumption at large. She says that men might have some perceptions about how women buy fashion brands, or broad fashion trends; something that women might know better than men.

“In several sectors, there could be instances where one gender, because of the nature of the work, may not have the full picture. There could be some sectors or industries or trends that men would understand better than women, as well. It’s a healthy mix,” says Gupta.

First career independence, now finance

Gupta agrees that it is important for women to handle their own finances. “The Indian society has matured over the years that it now recognises career women who have achieved that level of independence. The next thing is to take control of your finances. Because taking control of your finances gives you the sense of security, it tells you how much you can spend, whether or not you’re saving enough for the future,” says Gupta.

It also gives you the confidence to become an entrepreneur if you wish to start a venture on your own, she adds.

Where to invest in 2024?

Gupta is not unduly worried about the rising equity markets. But she says the time has come to be selective, especially when it comes to picking small- and mid-cap stocks. Although that the assessment for such companies has become more stringent over the years, she says there is no dearth of ideas. Gupta takes solace from her assessment that many more companies, especially those run by second-generation entrepreneurs, would get listed. “No dearth of ideas, therefore, but given their phenomenal rise, the caution has gone up,” she says.

And sectors to watch out for in 2024? Gupta likes Infrastructure, Manufacturing and Discretionary Consumption.