golden thumb rule: How to Retire Rich: Ajit Menon explains ‘The Golden Thumb Rule' of retirement planning
Show more
Show less
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
18 hours ago
- Time of India
Wealth creation lies in riding the growth phase of megatrends, not chasing hype: Bajaj Finserv AMC CIO
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In investing, timing and perspective often define long-term success. According to Nimesh Chandan, CIO of Bajaj Finserv AMC, the true Golden Thumb Rule for wealth creation is not about chasing hype but identifying and staying invested through the growth phase of megatrends In this conversation with Kshitij Anand, Chandan explains why megatrends should form the core of retail investors' portfolios , the risks of entering too early or too late, and how diversified funds can help capture these long-term opportunities while managing volatility . Edited Excerpts -Retail investors, at least in the recent few years I have seen have actually matured quite a bit. Gone are the days when we would worry if the market is falling, some retail investors will panic and sell and when markets are rallying, retail investors will come and now buy at a higher the crowd is getting more and more smarter where they are actually using the dips to increase their allocation towards equities. The only temptation that we should resist is looking at shorter term and looking at longer the longer term, you are not trying to time the market, you are just investing in businesses that will grow faster. As I said, that ultimately if a business does well, the stock price will follow. And for retail investors, megatrends becomes an important foundation or a plank to build a portfolio investing becomes the core of the portfolio. You may take tactical bets on certain cycles in metals or some other like highly cyclical sectors, but your core portfolio, something that you would want to hold for a longer term, say 5, 10, 15 years should be a megatrends you have to just keep a watch that those trends are alive. Those companies that have the potential to do well and you have selected, if you have selected the right business and the right management, they will capitalise on that megatrend. There may be some ups and downs within that journey, but then they become opportunities to add to megatrends should be looked at as a core holding, something that you would want to hold for a longer term. I just extend this argument by one more example. Tell any retail investor, close your eyes and think of a business that you would want to invest for a longer term, say 10 years.I do not need to see what stock somebody has thought of, but I am sure this is a company that people, they think will be a good growth business for a longer term. Megatrends help these businesses grow. So, megatrends act as a foundation or a plank for selecting businesses for a longer I will put two major risks that one needs to take care of. So, nothing is without risk and knowing the risk of an investment actually strengthens your investment case, because now you know what to be careful of. And in case a risk fructifies, you need to take a stop loss or get out of it. So, two things one should take care megatrends investing, the juice of making money lies in the middle stage. There are three stages. When the megatrend is just developing, it is just showing the number of winners or bets will be very few who know that, okay, this is the one that will do well. At the fagend, the megatrend is already played out, it is already priced the beautiful part of investing in megatrends is to take that growth phase when the megatrends has recently formed, but it is not completely being discounted by the market, so that is the first part is in mega trends investing and it is part of growth investing, where you are betting a lot on the future. So, you are giving valuation for the say, for example, in certain themes, people are so excited that they have discounted the five-year cash flows or 10-year cash flows of a company today in the valuation, then you need to be careful about what valuation you are you need to actually be careful that what the crowd has already discounted and what you have pencilled in as the growth rate of that mega trend, they should the crowd is ahead of you, then it is overpriced. The ideal situation is when crowd does not estimate as much as the growth rate as you do and then that is a good time to there are many ways of doing it. You can directly go into a sectoral or a theme fund when that sector or theme is benefiting from a mega trend or you can keep a diversified the one observation I have regarding sectoral funds and thematic funds is that people get excited about a sector or a theme after it has done well for two-three years. So, people typically come in at the top. Now, I am not seeing all investors, but generally you see the AUM somehow of the sector and thematic funds goes up close to the where they have already done well and people then try to get out when they see a correction in that trend. Somehow, they try to get out at the bottom. Ideally to make money in megatrends, you should be doing exactly should be investing at the birth of that megatrend and when it is fully discounted, you should be getting timing sectoral funds and thematic funds is a bit difficult, but if you have flexicap funds or a multicap funds, which hold this mega trends investing at the heart and those where the fund manager, the experts are actually watching these trends and timing it for you, I think that is a better way to go for if you go in a diversified fund, you have an opportunity to have a small investing in everything that is coming in the future. So, diversified is better, but up to the investors, if they think that they can time the sectors and the thematic funds well themselves, then they can go for it.I am quite bullish on the Indian markets and I think we have a very diverse set of businesses that you can invest in within India and the growth rate of the economy is extremely good, so we are like the top growing major economy, sixth year in a have a huge corporate sector, diversified corporate sector contributing to the profit pool with high ROEs. So, return on equities of Indian corporates is very good. Debt to equity are lower. However, there may be some themes or some companies that unique bets that you may have, which may be available some diversification for that can be done, but core holding, I believe, the Indian investors in India would benefit from it. So, a small allocation towards international, there is nothing wrong in it, but you study it well, understand it well, and then invest.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
12-08-2025
- Time of India
Portfolio Management Services in India - Myths, Benefits & Golden Thumb Rules with Sunil Rohokale
What exactly is Portfolio Management Services (PMS) and how does it work for individual investors? Why choose PMS over mutual funds? Is it still only for the ultra-rich or becoming accessible to younger investors? In this episode of The Golden Thumb Rule, Sunil Rohokale, MD & CEO of ASK Group, joins Kshitij Anand to break down PMS in simple terms. They discuss myths, minimum investments, benefits, trends, costs, and the role of technology in personalised wealth management. Plus, Rohokale shares his 'Golden Thumb Rule' for smart PMS investing. Show more Show less
&w=3840&q=100)
Business Standard
06-08-2025
- Business Standard
Investors pivot to quality, fundamental picks over momentum: PGIM India MF
As investment patterns in the Indian markets shift to high growth and good quality stocks, PGIM India MF suggests a portfolio strategy Listen to This Article Indian equities are witnessing a significant shift in investment trends, moving away from momentum-driven strategies toward high-growth, quality companies, according to PGIM India Mutual Fund. Amid stretched valuations and increased market scrutiny, analysts advise focusing on portfolios with a strong domestic orientation. Market rotation: From momentum to quality Markets have regained the ground lost in the first half of the year. Between April 2023 and June 2024, low-quality, poor-growth stocks in the NSE 500 universe surprisingly led the rally, delivering 84 per cent returns, while high-quality names lagged slightly behind at 51 per cent, PGIM India Mutual Fund data shows. In the
