Do you think women make better investment decisions? If yes, why?
Being a woman I am tempted to answer yes! But on a more serious note, I believe that investment is a process of deliberation. While the fund manager is the ultimate decision maker, the support system built in the form of an investment team is also very critical. So, I would rather say that a woman on board ensures diversity of thoughts and a perspective that is needed in making well-analyzed investment decisions.
Why is it that there are very few women fund managers in the MF industry in India and globally?
This is because the fund manager’s role is challenging and requires continuous learning.
The investment management field requires continuity and I have observed that many bright young women professionals have to take a break from work or have to relocate themselves in the interest of family in the absence of a good support system. Thus, we don’t have many women fund managers in India.
My belief is that a woman with a full family support finds it easier to handle both the responsibilities – work and family.
As a woman fund manager, what are the challenges that are unique to you?
To my mind, the male fund managers socialise with the sell-side easily. This may affect, at times, their ability to make unbiased decisions because of the information provided by sell-side analysts. However, more often, such information flow is ‘noise’ which does not have any long lasting effect on the relative performance.
Do you think a diverse fund management team will help in delivering better results for investors as opposed to having a male dominated fund management team?
Yes, I believe it certainly helps. As stated earlier, investment is a process and gender diversity or diverse education background helps in bringing in varied perspective and investment ideas for portfolio construction. In quite a few investment ideas initiation, I had to convince others before they accepted these ideas for the portfolios they manage and vice versa.
What would be your advice to women investors? How should they become financially independent and create wealth?
It is very important to have a good support system at home. Women should ignore small difference of opinions to maintain harmony and focus on the big picture to achieve their career ambitions.
Most women are treasurers at home. They balance the monthly income & expenses and generate savings. But they must know about their long term financial aspirations and liabilities such as children’s education, elders’ medical emergencies & retirement needs and then work out an investment plan with an expected return that will help achieve these targets.
They should invest in mutual funds, particularly through SIPs in equity funds. Equities have generated inflation beating returns over a long term and created wealth for investors despite the unnerving corrections in the short term. Rather than putting hard earned money directly in equity markets on the basis of informal advice, think of a professional approach to create wealth by investing in equity mutual funds. For short term financial requirements, they can invest in liquid and short term income funds.
Besides, buying term insurance and health insurance policies will safeguard them against unfortunate events.
Your favorite book
The Outsiders by William Thorndike, Jr.
How do you strike work life balance?
It was more challenging when the kids were very young. I had to stay awake many nights and prepare for important meetings or meet deadlines at work. In those years, I was fortunate to get the support of my family – spouse, parents, and parents-in-law, so that I could concentrate on my responsibilities at work. Social life was most affected during that period as I hardly had any spare time. Now, work-life balance has become easier as the children have grown up.
Besides the resources and flexibility that the organization provides, liking for the job, endurance, patience and multitasking is very useful in achieving a decent work-life balance.
If not a fund manager….
I would have been a medical professional.
