Don’t succumb to greed, and take a balanced approach to investing, says Sunil Bhatia , General Manager, Finance, National Fertilizers Ltd . He shares his perspective on savings and investments in an interview with Business Line . Excerpts:
What was your first investment?
I started investing when I was about 30 years old. My first investment was in bank fixed deposits. I gradually moved to equities, buying shares of select banks. I’ve also been doing systematic investment in equity mutual fund schemes. In 2003, I made my first investment in real estate in the NCR region.
I do not invest a fixed portion of my earnings except for regular SIPs. Depending on the requirement and surplus funds available at any given point, I decide on how much to invest.
Currently, how does your portfolio break up across asset classes?
I have parked a good part of my savings in liquid assets as my child’s higher studies will commence a year from now. At the moment, almost 80 per cent of my assets are in debt and the balance 20 per cent in equity. In equities, I have invested in banks, IT and energy sectors. Though I have invested in realty as an asset class, I’ve not invested much in realty stocks. Energy is one space which interests me and I keep looking out for opportunities.
Do you seek the services of a professional to manage your portfolio?
Yes, I have a professional wealth manager who advises me on investments.
What is your returns expectation?
In my opinion, 12-15 per cent annualised returns is quite reasonable, though there is no limit to one’s greed. I will happy with a positive inflation-adjusted return.
What has been your best investment?
Realty has been the best investment so far. Of course, equities have also given me healthy returns.
Could you share the lessons you’ve learnt?
It is important to balance risk and return and not give in to greed. Though quick money gives happiness, it can possibly find its way out soon, too. Hence, one should be prudent to diversify investments across asset classes such as debt, equity and realty so as to earn 12-18 per cent, which I believe is the average return across asset classes over a 10-15-year time-frame.
What key macro indicators do you closely track?
I track G-sec yields, inflation and foreign exchange rates on a daily basis, both from my profession and investment perspective. I also watch out for key data releases from the US, given their impact on Indian economy and equity markets.
What does money mean to you? Do you give to any charitable causes?
Ayn Rand rightly said ‘money is only a tool, it will take you wherever you wish, but it will not replace you as a driver’.
Money is essentially required to enjoy a reasonable standard of living. The satisfaction one derives from hard-earned money is unparalleled. However, it is not the end but just the means. I donate to charitable institutions, which approach me on a regular basis.