What are the three things you learned in 2015?
Professionally, 2015 only managed to increase the resolve that patience always pays and good quality companies combined with a decent growth outlook will trump the market over the long term. It also reinforced our belief in running high-conviction and focused portfolios.
Even as a business, Motilal Oswal AMC (MOAMC) ensured that the investing process is sacrosanct at all times as it’s the process which will eventually deliver the performance. One can never promise returns or performance in equity markets but the effort should be to uphold the promise of the process at all times. So in many ways, 2015 was the year in which most of our long-held beliefs and investing principles were put to test and turned out in our favour.
Personally too, it was a very satisfying year to have all the three funds which I am associated with being among the top performing funds in their respective categories. This was a hat-trick of sorts for me as a fund manager.
At a very personal level, the year was memorable given that it allowed me far more time with my family than usual. Two vacations to two very different and exotic locations in the same calendar year was the icing on the cake.
Advice for investors
- For those who find it difficult to understand individual companies or construct a portfolio, start with buying index funds or active funds. What is more important is to get started on the journey of beating inflation and wealth creation - don't forget that even a simple investment in equities via the Sensex has yielded a rich return of 16-17% CAGR over the past 15-20 years.
- You cannot eliminate but only prudently minimize equity investment risks - hence take investment decisions commensurate with your ability to withstand risk.
- Keep return expectations realistic - remember one can make only as much return from a stock as the underlying business will make over its lifetime.
The most memorable moment in 2015
On the professional front, the best two moments have been when:
- MOAMC hit the US$1 billion mark in AUM from virtually nothing in the year prior and
- When all our three flagship products were recognized among the best performers in their categories during the year.
Personally, my 10-year old daughter’s amazing progress at her school and the way some of her other mental faculties have sharpened (well, she can now read and write blind-folded!!) have stunned me.
Your New Year resolutions
No specific targets but will endeavour to keep up the positive momentum of 2015 at work and at home. I want to be far more active in areas of community service and social work in 2016. Learning to play golf and being more regular with exercising score high on the list of priorities.
