Religion Thicker Than Returns

In a market where investors live and die with every rise and fall of the Sensex, religion is emerging thicker than monetary gains.

And realising the attractiveness of a niche market of such high networth investors (HNIs), portfolio managers are increasingly catering to the specific needs of religion-finicky investors.

The portfolio management route offers a choice to the investor for specifying the sectors in which the investor wants the portfolio manager to invest.

Said a fund manager of a domestic fund: “For some select players, religion matters much more than cheap valuations and the growth prospects of a company. To take care of the needs of these players, select mutual fund players provide select options under their PMS schemes”.

“In select cases, Jains prefer not to invest in stocks of those companies which are against the tenets of their faith, like aquafarming, tobacco, tannery, leather, liquor etc,” the fund manager added.

Said Nishid Shah, fund manager, Birla Sun Life MF: “Our customised option under the PMS scheme will provide specialised service to investors where they have a choice of selecting the industry.”

A leading player active in the market since the last 15 years and certain other players in his circuit also strictly follow certain norms while they invest in the market, said sources close to these players. They keep away from investing in the stocks of those companies engaged in the industrial sectors like marine (fisheries), pharma, leather, breweries etc. Mehul Dedhia, relationship manager, Sharekhan, said, “I personally do not invest in the stocks of those companies which are active in certain sectors as we follow the principles of non-violence.”