Prashasta Seth of Prudent Investment Managers on Risk-First Investing and Building an Agile Asset Management Firm

StartupTalky presents Recap'25, a series of exclusive interviews where we connect with founders and industry leaders to reflect on their journey in 2025 and discuss their vision for the future.

In this edition of Recap’25, StartupTalky speaks with Prashasta Seth, CEO of Prudent Investment Managers LLP, who shares how a risk-first investment philosophy and startup-style agility are shaping the firm’s approach in an increasingly volatile market environment. With capital preservation at the core of Prudent’s DNA, Seth reflects on why disciplined downside management, deep bottom-up research, and valuation rigor matter more than ever in uncertain times.

He goes on to discuss how Prudent Investment Managers has evolved by combining institutional investing principles with lean decision-making and high client engagement—allowing the firm to remain selective, flexible, and responsive amid market volatility in 2025. The conversation also explores the growing demand for customised portfolio solutions among HNI and family office clients, the role of alternative assets in India’s evolving asset management landscape, and Prudent’s roadmap for scaling responsibly—from nearly INR 1,000 crore in AUM today toward INR 3,000–4,000 crore—without compromising on governance, research depth, or long-term client trust.

StartupTalky: How would you describe Prudent Investment Managers’ core philosophy, and how has approaching 2025 “like a startup” shaped the way you operate?

Prashasta Seth: At Prudent Investment Managers, the core philosophy is anchored in risk-first investing, discipline, and long-term capital protection. The firm believes that sustainable wealth creation is a natural outcome of managing downside risk effectively rather than pursuing short-term, momentum-driven returns. This philosophy translates into rigorous bottom-up research, conservative position sizing, and a strong emphasis on balance sheet quality, cash-flow visibility, and valuation discipline across portfolios.

Approaching 2025 “like a startup” reflects Prudent’s commitment to continuous reinvention despite the leadership team’s deep institutional experience. The firm operates with a lean, high-conviction structure that allows faster decision-making, sharper accountability, and closer engagement with clients. By constantly questioning conventional investment frameworks, adopting new ideas in portfolio construction, and remaining closely aligned with evolving client needs, Prudent combines institutional depth with startup-style agility moving quickly, thinking independently, and staying uncompromisingly client-centric.

Key takeaways:

• Risk-first mindset: A disciplined focus on capital protection, research depth, and downside management as the foundation of long-term wealth creation.
• Startup-style agility: Lean operations, independent thinking, and continuous innovation despite decades of institutional experience.

StartupTalky: 2025 has been a volatile year for markets. How did your investment strategies evolve to stay agile and protect investor interests?

Prashasta Seth: Market volatility in 2025 reinforced our belief that capital preservation must precede capital growth. We responded by staying selective rather than reactive focusing on balance sheet strength, cash flows, and valuation discipline.

At the portfolio level, we maintained flexibility in asset allocation and avoided crowded trades. Consequently we took decided to take some exposure in gold (through ETFs) and  we identified pockets of value emerging after a long time, particularly in select microcaps, where risk-reward dynamics became favourable. Our agility came from deep bottom-up research, allowing us to deploy capital prudently during corrections while safeguarding client interests during uncertainty.

StartupTalky: How do you customise investment strategies for HNI clients to align with their risk appetites, financial goals, and portfolio needs?

Prashasta Seth: Customization is at the heart of Prudent’s offering. Our HNI clients are not looking for mass-market products they seek solutions tailored to their financial realities, liquidity needs, and long-term aspirations.

We begin by understanding each client’s risk tolerance, time horizon, and existing asset exposure. Portfolios are then constructed bottom-up, with clear allocation logic, position sizing discipline, and continuous monitoring. As client circumstances evolve, so do their portfolios. This bespoke, high-engagement approach is what differentiates us and builds long-term trust with HNI and family office clients.

StartupTalky: Looking ahead, what key trends do you believe will redefine asset management in India, and how is Prudent preparing for the next phase of growth?

Prashasta Seth: Indian asset management is undergoing a structural shift. As the HNI and UHNI segment expands, investors are increasingly seeking boutique managers who offer personalization, transparency, and alignment of interest, rather than standardized products.

The future will be defined by:

• Customised portfolios over mass products
• Strong governance and risk frameworks
• Alternative assets playing a larger role alongside public markets

Prudent Investment Managers is preparing for its next phase by scaling thoughtfully through AIFs and future private equity strategies, having grown from zero to nearly INR 1,000 crore in AUM in less than 4 years of operation, and now targeting a judicious expansion to INR 3,000–4,000 crore over the next 3–4 years through organic, trust-led growth without compromising on research depth or governance.

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