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Fund Manager: To manage investor money entirely in accordance with the mandate for the fund. Never deviate from the mandate, in letter or spirit, whatever be the market circumstances that may tempt or pressure the manager.

Investor: Stay committed to the time horizon that she originally signed up for, and not revisit this in response to changing market dynamics

Fund Manager: Manage investor money with a purely rational approach, bereft of all emotional impulses. Never be swayed by market sentiment and herd mentality and maintain a logical and data-rational approach towards investment decision making at all times

Investor: Avoid the perils of making investment decisions swayed by prevailing market sentiments of greed and fear and adopt a rational approach towards all investment decisions.

Fund Manager: Build independent conviction in each stock and be guided by own convictions rather than heresy, especially in times when some of the stocks the manager owns underperform. Test one’s convictions by objectively evaluating the investment argument, and not by evaluating near time stock price performance.

Investor: Maintain conviction that short term market movements are irrelevant to one’s long term wealth creation goal. Never waver from one’s belief that long term wealth creation in equity funds is solely dependent on the long term earnings growth of the stocks in the fund, which one trusts the manager to buy judiciously.

Fund Manager: Adopt a well defined process oriented approach to managing investor money – a process that will be uniformly adopted by every member of the firm’s investment team, to ensure discipline and diligence in managing client money.

Investor: Make investments through a well defined goal based asset allocation oriented process, eliminate impulsive and ad-hoc investments and bring in discipline in investment decisions.

Fund Manager: Buy into businesses based on high conviction and then stay invested in these businesses and grow with them over years and decades, unless one has reason to believe that they no longer represent attractive investment opportunities.

Investor: Adopt likewise a buy right and sit tight approach with investments made in equity funds. Do homework and carefully select an equity fund before investing, and then sit tight – sell only when one really needs the money and not flit from one fund to another, chasing the best performing fund of the previous year.

Fund Manager: Always remember that despite one’s best efforts, some investment decisions will not become winners, have the humility to readily accept a mistake when one has been made, learn from it and move on in the quest to grow investors’ wealth. Never allow ego to come in the way of better judgement.

Investor: Understand that some wrong turns are inevitable in a long investment journey. Never evaluate fund performance on the basis of individual hits and misses, but in a holistic manner, over a market cycle.

Fund Manager:Be absolutely transparent at all times in terms of sharing details of the portfolio, the charges and any other information that the investor may need about the fund.

Investor: Gain confidence from this transparency and reinforce one’s resolve to stay invested for the long term.