Given the nature of your work, how do you maintain the discipline of investing?
I invest whenever I get money. I’m a commerce student so I have a fair understanding about investments. I have invested in fixed deposits and some money is lying in my savings account. In the last fifteen years, I have diversified into mutual funds and real estate. I try to monitor my investments on a regular basis. I’m a little disappointed with a bank which recommended me some mutual funds. After 2-3 years, I realized that the advice which they gave me was incorrect.
Who advises you on investments now? Do you do some research on your own?
I do research on my own and also take advice from my family members and friends. Relationship managers also help me with my investments. So I take advice from everyone. There is a lot of instinct involved when you invest in any business/product. This business essentially involves instinctive comfort that you form with the relationship manager or with the person who is pitching you the product. If I connect with that instinct, I go with the recommendation made by the advisor.
Have you been able to establish trust with any of the RMs?
Relationship managers tend to move. You begin to trust somebody and you listen to them for a year, and then suddenly, you get a mail saying ‘I’ve moved from this institution’. Then you’re stuck. Again, somebody else is appointed and it takes a couple of months to build relationship with that new person. You’re lucky if that new RM survives otherwise even he/she moves on. I have had this experience.
I think that’s the nature of this business. You cannot blame anyone for that. But what I would like to see is some integrity in RMs. Ultimately, we all are dealing with humans. If any institution or person guides me through my adverse times, I tend to trust that person more.
You have worked with bankers and individual advisors. Will you trust bankers or individual advisors?
I would trust an individual advisor more as I can connect with them. They have certain continuity as they don’t represent an institution. There’s a personalized touch.
Do you ever worry about the well-being of your advisor?
Yes I do. There’s a lot of knowledge and experience advisors share with me. So, the wellbeing of that person is of paramount importance for me. I try to keep them at ease. However, I tend to be demanding at times with my RMs or advisors.
If your next RM is a young kid, what advice will you give him/her to build integrity?
It depends on how the person is trained and how his personal value systems are. Your personal value system shows how you sell the product.
‘We are like a competitor to mutual funds’
Dhaval Barot, Director of Bharat Infrastructure and Engineering Ltd talks about his investments experience.
You are in the real estate business and you would have invested mainly in property. Are you looking at diversifying your investments?
I have always been investing in real estate as I operate in this sector. So whenever there is an opportunity, I have always invested in property. We have expertise in real estate and I sometimes feel that I can get far higher returns in real estate as compared to mutual fund or any other investments. Most Indians prefer to invest in real estate, so in a way we are competitors to mutual funds.
Haven’t wealth managers/advisors advised you to diversify?
Yes, a lot of times. Banks advise us to invest in a lot of instruments. We had invested in a few instruments but we did not have a good experience.
Have you insured adequately?
My parents have always invested in LIC policies.
Since you have invested through banks, what is the level of trust for the advice which you have taken?
I think the consistency is very important. They (RMs) sell products very well. But the after sales service is not good. After one year, clients have to chase RMs to know their whereabouts. This needs to be changed.
Going forward, would you wish to diversify into other asset class?
As of now, I will continue to invest in real estate as I find the real estate sector more trustworthy and reliable.
