These IIM-Lucknow Students Are Also Managing Their Classmates’ Money
These students cut their teeth in stock picking by managing their classmates’ money.
At the Indian Institute of Management, Lucknow eight students each year have more to do than their peers: managing an investment fund. Called Credence Capital, the club that runs the fund is in its 15th year of its existence, and manages what students invest.
“We’re managing AUM (assets under management) of more than Rs 10 lakh and the current portfolio comprises HDFC Bank, Kotak Mahindra Bank and Reliance Industries,” said Chirag Mahavar, a student of IIM-Lucknow and a member of Credence Capital. “These are a few of our major holdings.”
To be sure, several business schools across the country have similar investment clubs that invest in the capital markets.
At the start of each year, Credence Capital members from the senior batch set out the objectives of the fund. They invite classmates to contribute and give periodic updates about its performance.
The selection of stocks is a collaborative effort. One industry is assigned to two people, according to Anish Lakhani, another member of Credence Capital. “The idea is that those people will come up with investment ideas and discuss with the entire group. If we feel that it's the right investment to make, then we go ahead with it.”
Since they juggle the responsibility with academics, the students start early in the day to stay abreast of news.
“We have to make sure that we have a clear strategy in play for the day so that we know what we want to buy, when we want to buy it, and also then probably look at how long we want to hold it,” said Atharv Saxena, also a member of the investment club.
The current year has been a challenging one for Credence Capital as markets have remained volatile.
The club members also rely on the insights provided by market experts at their annual festival Nivesh. This year, students interacted with Ramesh Damani, a veteran investor; Siddharth Rastogi, managing director at Ambit Capital, Nithya Easwaran, managing director, Multiples Alternative Asset Management; and Mukul Arora, managing director, Saif Partners.