In an interactive session with the students, Mr. Sumit Kumar Jain, Senior Vice President at ASK Wealth Advisors Pvt Ltd. and Mr. Ashwani Agarwall, Equity Analyst at Baroda Pioneer Mutual Fund shared with students their intriguing insights on investment and stock markets.
As it turns out Mr. Sumit found his interest in the field of investing quite early in his life and started investing at the age of 11. The session started off with him asking the audience, how many of them actively invested and if not, what are the reasons behind it. Most of the audience responded by saying that it is the risk of losing money which prevents them from doing so. He then continued the session in this direction.
“The moment you expand your horizon there is no risk.” he said.
According to him, investing demands discipline and if you make sure that you persistently follow basic discipline you can rest assured you will surely get good returns. Today everyone is in a hurry to multiply their returns and it is in this haste that they lose discipline and the situation deteriorates. He further added that people often fail to control their emotions while investing. People commonly perceive investment as wealth or risk management; rather, it is emotion management.
So, Risk is only existent in your mind. The only thing that matters is the time frame and security which you set before taking the risk. He further discussed with students a few things they should focus on while investing, which are Business, Management, and Quality. An investor should not be deceived by the growth of a company because all growth is not profitable growth. Although the company might be growing but we can’t overlook the cost at which it is growing. It is always wise to invest in a simple business with which people can easily relate to.
As the session approached its end, he encouraged the students to start reading books, especially those by famous philosophers. Business today has become all about predicting what the next person is thinking and then outsmarting him. Books give you the talent to do so. He concluded by saying
“Invest in something you understand. Don’t invest only because you see there is money. In this case, you will not be able to sustain the conviction to stay.”