stock market: My best investment is the discipline of investing in stocks rather than an MF product or program or stock: Ajay Tyagi

0
“I’ve always tried to figure out how much money I might need as an emergency fund or for a family event and keep it in fixed income and fairly liquid assets. Other than that, everything else goes into equity. When it comes to my personal asset allocation, I would be heavily biased towards equities, says Ajay TyagiEquities Manager,


What was your first investment?
My first investment was after I started my job and it was in tax saving bonds. At that time there were these infrastructure related bonds which also provided tax savings and the ELSS as an instrument had a very low exemption limit. So we kind of had to invest in things like bonds and that was my first investment.

Let’s talk about investment decisions and strategies. What have been the best or worst investment decisions you’ve made so far?
It’s very easy; my best investment was the discipline of investing in stocks rather than a commodity or mutual fund or stock. I would just say that having been disciplined early on to invest in equities as an asset class turned out to be my best investment.

Somehow my worst investment came in the first two years when I invested in bonds because I wanted to save tax, but from a slightly longer term perspective, it didn’t provided the returns that the other asset class like stocks provided.

In this scenario of global uncertainty and unpredictability, what is your asset allocation today?
For me, asset allocation is primarily equity driven. I always tried to figure out how much money I would need as an emergency fund or something I would need to fund a family event. This is the amount I have always tried to keep in fixed income and fairly liquid assets. Other than that, everything else goes into equity. Regarding my personal asset allocation, I would be heavily biased towards equities.

You are strongly oriented towards equity; do you also have a fixed income portfolio and if you do, can you share it?
It is mostly some debt schemes of UTI itself and part of it is still in the bank account. It’s very basic. There’s nothing complex I’m trying to do in fixed income. A certain amount of money in cash, a certain amount of money in debt funds and money in the bank in the form of DF.

Do you think rebalancing is an important step to take when it comes to realigning your portfolio goals? How do you rebalance the portfolio?
No, as I said in the answer to the previous question, because everything is mostly in stocks and there is hardly any rebalancing. In addition to keeping the required amount due to a contingency, emergency or event, everything else goes into equity and I’m very happy to ride through all the volatility that occurs in the stock markets without feel the need to rebalance from time to time.

Normally, whenever we advise investors to build a financial portfolio, we tell them that it should be aligned with their financial goals. So, what financial goal have you been able to achieve with your investment portfolio?
I would say more than any material financial goal like buying a house, buying a car, funding a child’s education, my biggest financial goal was to gain some independence, some mental security. My investment portfolio did just that and provided me with some security and a very liberating feeling in terms of extreme independence and not being dependent on any event in my life.

Share.

Comments are closed.