Mr. Krishnamurthy Vijayan is the Chief Executive Officer of J.M. Capital Management Pvt. Ltd., (the asset manager of JM Mutual Fund). He is a veteran of the mutual fund industry, having spent more than 15 years in this business. He has handled a number of portfolios in Unit Trust of India before joining Jardine Fleming as a part of the team that set up its mutual fund business in India. Mr K Vijayan has been instrumental in ushering a strong system of professional intermediation for the mutual fund industry.

With both equity and debt markets showing some volatility, we felt this was the right time to interview Mr K Vijayan to assess his views on equities, interest rates and of course the forthcoming Union Budget.

Pfn: What is your view on equities at these levels?

Mr. Vijayan : The equity market seems to reflect the general sentiment at this time – on the one hand the fundamentals seem very sound, but on the other the environmental factors give some cause for nervousness. I think the market will be largely range bound, giving many trading opportunities across a wide range of stocks and sectors. It is a good time for retail investors to choose diversified equity funds.

Pfn: What looks most optimistic to you on the economic front? What continues to be a matter of concern?

Mr. Vijayan : The fact that the liberalization process has received a clear positive direction is the single largest positive in the last month. The single major cause for concern is the fact that the overall interest rates in the economy are not coming down as rapidly as they should.

Pfn: Would you like to comment on the interest rate scenario?

Mr. Vijayan : The interest rates still seem high compared to the internationally prevailing rates. Given the Indian context, I don’t see a dramatic downturn. Instead, I would expect that the bias would be downwards and the gradual slide will give investors in debt funds to continue to get good returns for some time.

Pfn: Which sectors look most promising to you? Where does the next big opportunity lie for investors?

Mr. Vijayan : I don’t there is a single “red-hot” sector at the moment. Most of the sectors have seen a process of restructuring and reform, among the leaders. That is one reason I believe that the market is displaying a broad-based positivism.

Pfn: What in your view will provide a boost to mutual fund investors in the upcoming budget?

Mr. Vijayan : The mutual fund industry has seen a lot of tinkering in each budget. I think the single biggest positive would be if the status quo was maintained and allowed to continue for the next few years.

Pfn: What mutual fund reforms would you like to see in the budget?

Mr. Vijayan : As mentioned earlier, my fervent plea would be to maintain status quo. The industry is evolving well and should be able to stand on its own feet soon. SEBI as a regulator has been far-sighted and pro-active. We now need continuity.

Pfn: What advice do you have for the mutual fund investor?

Mr. Vijayan : The retail investor should now start looking at picking a good fund advisor, based on the education, experience and skills of the person as well as the capabilities of the organization backing the advisor. A good advisor would then be able to take care of your financial health.

Pfn: Who are three persons who have had an influence on your life?

Mr. Vijayan : Besides my parents, the three major influences on my life have been Mr. K G Vassal and Mr M J Pherwani of UTI and my tenth standard teacher, Fr. Gilson of St. Xavier’s school, Durgapur. Fr. Gilson taught me how to study (I was a bit of a laggard before this). Mr. Vassal was my mentor and guide in my professional career and showed me how to work with people and achieve results. He also taught me about courage of conviction. Mr Pherwani is my role model of a successful CEO – the dynamism and sense of purpose that he had, showed me how to think big and execute one’s ideas.

Pfn: What kind of books do you like to read?

Mr. Vijayan : I love reading, and read all kinds of books. Currently I am reading “Arise, O India”, by Gautier and eagerly looking forward to getting the next Harry Potter! My favorite author of a all times is P G Wodehouse and among the current lot, I like Jeffery Archer and Richard Bach. Among non-fiction, I admire McCromack and Dr. Wayne Dyer.

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