What is the most
exciting thing about your job?
To know that there is a new opportunity every single day. Financial markets are perhaps the most difficult to call, may be just next to weather forecast. The challenge is to deliver high quality consistent performance over long term. India exited in the first round in 2007 Cricket World Cup but went on to win the next World Cup. Most people don’t get so many chances in life. And that’s the exciting part. To survive multiple business cycles and deliver high quality performance over this long period, I think suggests a highly risk-managed approach to investing, waiting out adverse market cycles with success and capturing major opportunities on the way.
Tell us what it feels to be responsible for managing other people’s money.
It’s a very humbling experience. To be able to do the job in an objective, transparent and consistent way, a well defined process is critical. I have had the fortune of working with some of the best brands in the industry where I got the support of global processes and core values that help in shouldering such a huge responsibility.
Did you always want to manage money? If not a fund manager, you would have been
Yes. And I have been fortunate to have had the opportunity to able to do so and in various segments of market. Thanks to a silver medal in CA course, I never really had any need to make a career choice. So at this stage, I have no idea what else I could have tried.
Tell us about your first investment - What was it? How did it turn out? Any lessons you learned from that experience? When and how did your interest in stocks begin?
I started my career in 1991, around the time India launched the financial sector and Industrial reforms. Stocks were appreciating at a fast pace. So it was a good start. Then the crisis hit the market in 1992 and stocks plunged. So, in a very short period, I saw the high and low of the markets. Important lesson I learnt was to basically stick to fundamentals as a core strategy while allowing space for tactical movements. And doing his without compromising on sound risk management practices.
What role does luck play in investing?
Luck favors the smart and the brave. So, we create our own luck. At least that is the belief one has to carry. May be luck has a very important role in investing but I don’t feel it has ever been on my side yet.
What are the qualities that you feel a good Fund Manager should have?
Ability to keep it simple is very important. A macro approach, analytical ability, passion and commitment are needed. Most importantly, listen to market forces particularly in current environment, where the central banks and government actions are increasingly driving the markets.
Share with us the best advice you have ever received.
Don’t blame anyone else or the stupid markets for any problem or any failures. Problem is within us and so is solution.
If you were allowed to spend a day with someone from the world of investments/business of your choice who would give you wisdom and perspective, who would it be? Why?
There are so many of them, it will a long list. But if really have to select one, may be one of my unhappy or unsatisfied investor or distributor. I would like to understand their perspective and explain our side of things as well.
Your favorite book
The Adventure Capitalist by Jim Rogers
How do you unwind?
Family and friends. I love playing snooker as well.
Over the next 10 years, the most exciting country to invest in would be
It could be India only if all the right things are done rather than discussed. Otherwise, I think US and China are the two best countries to invest in for next 10 years.
Advice for budding Fund Managers
I am still learning. Not sure I can advice anyone. But, successful fund managers are those who survive multiple business cycles and that happens only with good risk management. There are so many super stars who don’t outlive even one bull run. So, if that sound like a sensible advice, then that is the one from me. Always focus on long term. Equally important, create enough reserves and goodwill to be able to absorb pain in the short term. After all, if you don’t survive that short painful period, long term simply won’t happen.
