A Process for Bad Markets, Not Just Good Ones

I.V. SubramaniamManaging Director & Group Head - Equities at Quantum Advisors Private Limited

4 August 2026
6 min read

For most individual investors in India, the conversation about money begins with a product. A mutual fund NFO(New Fund Offer), an insurance-linked plan, a PMS with a slick deck. The pitch is built around a trailing return number.

Institutions start somewhere else entirely.

They are not buying a product. They are hiring a system.

The questions that follow are ones I have heard, and answered, many times.

"What is background of the founders?"

"What is their investment philosophy?"

"What is the process to fulfil the philosophy?"

"What happens to this portfolio when markets fall 30%?"

"How is the research idea generated?"

"How is the portfolio constructed?"

"Who decides what to sell, and in what order?"

"How do you manage risk when liquidity dries up?"

"What is the capacity of the strategy?" meaning how much capital can the strategy realistically absorb without compromising its core investment philosophy?

Performance matters, but it is treated as an outcome of process, not the process itself. Institutions know that markets rise and fall in cycles. A good year proves nothing. A bad year does not automatically mean a bad manager. What they want to test is discipline. They ask for an Investment Policy Statement or Disclosure document, a document that lays out history, team strength, objectives, asset allocation strategy, rebalancing rules, and what the manager will not do. They audit and question the team for adherence to a process. They demand transparency on fees, holdings, and conflicts.

Contrast this with what most individual investors are handed. The conversation usually begins with a product. A mutual fund NFO, an insurance-linked plan, a PMS with a slick deck. The pitch is built around a trailing return number: Eg."This did 24% in the last 1 year." The marketing subtly shows only the upside. The discussion about drawdowns, about what to do in a bear market, about taxes and rebalancing, is either missing or comes much later.

This creates two problems. First, investors buy based on past performance, which is a poor predictor of future results. Second, they have no framework to fall back on when volatility hits. When markets fall, there is panic, not a plan. Gut feel replaces discipline. The result is buying high and selling low, the exact opposite of what the written institutional framework prevents.

That is the core insight, Institutions allocating capital demand process, not promises. They care more about how decisions are made than what the last quarter's return was. They plan for bad times at the same time they plan for good times.

Quantum Advisors FamilyOffice^® applies that same institutional rigor to Indian families' wealth. The conversation does not begin with which product to buy. It begins with goals, risk capacity, and a framework for processes.When we invest on behalf of the families instead of starting with "which fund should I buy for the investor," it starts with "what are your goals, what risks can you take, and what rules will we follow no matter what the market does." It means having a framework. It means scenario planning for a suitable mix of asset allocation. It means judging the manager on adherence to process, not just on a single year's return.

For Indian families, this is a shift. It moves the conversation from products and pitches to principles and process. It treats family wealth with the same seriousness as an institution treats its corpus.

In the long run, that is the difference between building wealth and preserving it.

Not available for investors in U.S.A., Canada, countries forming part of the European Economic Area (EEA), U.K., Switzerland, Australia.

Disclaimer: This article is for information purposes only. It is not a recommendation and should not be treated as such.

• Quantum Advisors Private Limited (QAPL) is registered in India and holds a Portfolio Manager License from Securities and Exchange Board of India (SEBI), India vide registration number INP000000187. It is also registered with the Securities Exchange Commission, USA as an Investment Adviser and a Restricted Portfolio Manager with the Canadian Provinces of British Columbia (BCSC), Ontario (OSC), and Quebec (AMF). It is not registered with any other regulator. (Note- Registration with the above regulators does not imply any level of skill or training).
• The views expressed herein constitute only the opinion and do not constitute any guidelines or recommendation on any course of action to be followed by the viewer. This is not meant to serve as professional guide.
• Investments in securities market is subject to market risks. Readers are advised to seek independent professional advise and read the offering documents carefully before making any investment decision.
• FamilyOffice^® is a registered trademark of Quantum Information Services Private Limited and QAPL is the licensed user of the said trademark. FamilyOffice^® is the branding under which QAPL offers its Quantum OCIO Strategy.
• QAPL provides a direct on-boarding option to clients who wish to avail their services, without intermediation of persons engaged in distribution services.
• For detailed description of Quantum OCIO Strategy such as investment objective, assets allocation pattern, investment strategy and philosophy, associated risk factors and other details please refer to the Disclosure Document available at www.QASL.com.

CONFLICT OF INTEREST:

• This communication contains references to portfolio management services offering of Quantum Advisors Private Limited, an affiliated entity of Quantum Information Services Private Limited. Readers are advised to seek independent professional advise before making any investment decision.
• Quantum Advisors Private Limited (QAPL), a SEBI registered Portfolio Manager and Quantum Information Services Private Limited (QIS), a SEBI registered Research Analyst are affiliated entities. These entities are functionally and operationally independent of each other and are governed by their respective regulations.
• QAPL has its own inhouse research and investment team for all its strategy offerings. QAPL seeks "Research Inputs" or "Research Services" of non-binding nature from QIS with respect to mutual funds and equity stocks and also marketing and promotion services for one of its strategy offerings viz., Quantum OCIO Strategy. Towards these services, QAPL pays QIS a composite compensation that is linked to the management / advisory fees earned by QAPL from the assets managed or advised under the OCIO strategy, and the same is paid out of the management / advisory fees that QAPL receives from its clients under the OCIO Strategy.

I.V.Subramaniam, known as Subbu, has managed India-focused portfolios at Quantum Advisors for over two decades, for domestic investors and some of the world's largest institutional clients. He brings 33 years of market experience to every investment decision.

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