In this edition of Ventura Spotlight podcast, we sit down with Mr. Atul Bhole, Fund Manager at Kotak Mutual Fund, for an insightful conversation with Juzer Gabajiwala, Director at Ventura Securities.
With over 18 years of experience in investment management and currently managing an AUM of more than ₹50,000 crore, Atul leads flagship funds such as the Kotak Equity Hybrid Fund and Kotak Emerging Equity Fund.
From managing investor emotions to identifying quality businesses and building long-term conviction — this discussion offers a masterclass in how seasoned fund managers think, act, and invest in evolving markets.
Inspired by a professor who was himself a seasoned investor, Atul found his calling in equity research. After nearly a decade in research, he transitioned to fund management, beginning his journey with Tata Mutual Fund in 2011.
He shares how mentors at Tata played a crucial role in shaping his analytical thinking. In early 2024, he joined Kotak Mutual Fund, where he now manages two of the AMC’s key equity portfolios.
When asked how he manages the pressure that comes with handling thousands of crores, Atul replies calmly, “When you love what you do and your intentions are honest, there’s no stress — just responsibility.”
Atul’s core investment belief is rooted in understanding the business and the people behind it.
“When you buy a company’s share, you’re not buying a lottery ticket — you’re becoming a part owner of that business,” he says, quoting Peter Lynch.
For him, the quality of management and business model come before growth metrics or valuations. Only after gaining confidence in these pillars does he look at numbers like price-to-earnings or price-to-book ratios.
He cautions retail investors against value traps — low-valuation stocks that look cheap but lack fundamental strength. “Know what you’re buying,” he emphasises, adding that diversification and clarity are essential for anyone investing directly in equities.
Atul also breaks down qualitative factors investors should assess:
“Even great managements can go wrong when greed takes over during bull cycles. Understanding how leaders behave in both good and bad times is critical,” he explains.
Every investor, he admits, has their share of wins and misses. Atul candidly shares one of his biggest learnings — his investment in Yes Bank.
Despite early success, he held on even as red flags appeared. “I justified my holding when facts were telling me otherwise. I learned that you must stay open-minded — never fall in love with your investment.”
On the flip side, his long-term conviction in companies like Bajaj Finance and Shree Cement paid off spectacularly. Holding them for nearly a decade turned them into 20-baggers.
“The market often calls quality companies expensive, but staying the course with strong management and consistent growth can deliver extraordinary results,” he notes.
Atul calls patience the “non-negotiable” rule of wealth creation.
He cites a striking example — in a 20-year-old fund he managed, while the fund delivered around 18% CAGR, only 23 investors stayed invested for the full period and reaped those returns.
“The rest moved in and out based on short-term performance and ended up earning just 7–8% CAGR,” he explains.
His message is simple yet powerful: don’t disturb compounding.
Frequent entry and exit decisions, driven by fear or greed, can rob investors of long-term gains.
Fund managers, Atul admits, are human too. Emotions like fear, greed, and FOMO exist — but experience helps build discipline.
“After 10–12 years in the market, you learn from multiple bull and bear cycles. Guardrails and experience help you avoid excesses — whether it’s panic selling or overpaying during exuberance.”
He shares how he resisted FOMO during the IPO frenzy of recent years — investing in only a few despite the hype.
“Many IPOs were driven by excitement, not fundamentals. Staying patient and rational saved us from missteps.”
When it comes to creating alpha, Atul explains that he remains benchmark-aware but not benchmark-hugging.
“We are active managers — our job is to generate differentiated returns through conviction, not replication.”
Finally, for individual investors, he suggests favouring B2C companies that cater directly to India’s growing consumer base over cyclical B2B businesses. And his golden rule?
“Invest only in what you understand. When you buy a stock, you’re buying a piece of a business — not a price on a screen.”
Watch the Full Conversation: Ventura Spotlight with Atul Bhole, Kotak Mutual Fund's
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