InvestorQ : Is it true that Navneet Munoth is quitting as the CIO of SBI Mutual Fund and how do you think it would impact the performance of the fund?
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Is it true that Navneet Munoth is quitting as the CIO of SBI Mutual Fund and how do you think it would impact the performance of the fund?

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Riya Dwivedi answered.
1 week ago
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It is now confirmed that Navneet Munoth will be moving on from his role as the CIO of SBI Mutual Fund. Under his leadership, SBI MF to become the largest Indian mutual fund by assets under management or AUM and it has now widened its lead over HDFC MF.

Interestingly, Navneet Munoth, current head of SBI MF, will take over from Milind Barve as the Managing Director and CEO of HDFC MF. As the CEO of HDFC MF, Munoth will have much wider and larger responsibilities to oversee. There are also some key challenges.

Over the last couple of years, HDFC funds have lagged their peers both in terms of returns and flows. Even in terms of AUM, it has fallen way behind SBI Mutual Fund. In the last quarter, HDFC was the only fund in the top 10 funds to see negative AUM growth.

Currently, HDFC MF manages Rs.375,000 crore while SBI MF is already managing close to Rs.450,000 crore. This massive lead has been built up in less than one year as HDFC MF was leading the AUM sweepstakes even as early as two quarters back.

Barve had hinted at his intention to exit in Jan-21 when his term gets over. The HDFC management felt that Munoth, with his credentials at SBI MF where he was responsible for the aggressive growth of SBI MF, would be the right candidate for the top job.

The markets are already rife with news flows about the possible exit of Prashant Jain, the current CIO of HDFC MF. Although Prashant has denied rumours that he was quitting, he has actually sold a chunk of his holdings in HDFC MF stocks in the last few months.

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