Latest news with #RadhikaGupta
Mint
3 days ago
- Business
- Mint
The temperament trap: Why your personality might be your portfolio's biggest enemy
I recently discovered a curious thing during a conversation with a software engineer friend. He's spent hours analysing quarterly results, studying balance sheets, and calculating intrinsic values before selecting what he considered the perfect stock. Six months later, after a 15% decline, he sold everything in a panic. Meanwhile, his wife, who describes herself as 'hopeless with numbers", had quietly accumulated units in an equity mutual fund through a systematic investment plan (SIP). Her return? Significantly better than his, with far less stress. This isn't an isolated incident, and it's not about stocks vs mutual funds. It's a pattern I've observed repeatedly over two decades of writing about investments. The most analytically gifted individuals often struggle with investing, not because they lack intelligence, but because their very strengths become their greatest weaknesses when markets turn volatile. Also Read: Ask yourself these questions to avoid emotional investing Consider the typical traits we associate with successful professionals. Doctors are trained to make quick decisions under pressure. Corporate executives thrive on immediate feedback and rapid course corrections. Engineers solve problems through systematic analysis and optimisation. These are admirable qualities in their respective fields, but they can become a problem when applied to equity markets. The doctor's instinct to act swiftly when something goes wrong translates into panic selling during market downturns. The executive's need for constant feedback leads to obsessive portfolio monitoring and frequent trading. The engineer's desire to optimise every variable results in endless tweaking of asset allocation and stock selection, often at precisely the wrong moments. But here's what's particularly fascinating: some personality types that society doesn't typically celebrate often make remarkably successful investors. The chronic procrastinator who takes months to make any financial decision might miss some opportunities, but they also avoid most disasters. The absent-minded type who forgets to check their portfolio for years at a time often discovers they've accidentally become quite wealthy. Manage instincts This raises an uncomfortable question: If temperament matters more than intelligence in investing, how do we work with our natural inclinations rather than against them? The first step is honest self-assessment. Are you someone who checks share prices multiple times daily? That's a warning sign. Do you feel compelled to act on every piece of market news? Another red flag. Do you constantly second-guess your investment decisions? You're probably overthinking. Also Read: Inside Edelweiss MF CEO Radhika Gupta's plan to build over ₹10-crore—and how she's investing to get there The solution isn't to change your personality—that's neither possible nor necessary. Instead, build systems that compensate for your temperamental weaknesses while leveraging your strengths. If you're naturally impatient, automate your investments through SIPs. This removes the daily decision-making that fuels your impatience, while ensuring consistent wealth building. If you're a perfectionist who struggles with uncertainty, focus on index funds rather than individual stocks. You'll never pick the perfect stock, but you don't need to. If you're prone to panic during volatility, limit how often you check your portfolio. Some investors I know have given their login credentials to a trusted family member with instructions not to return them during market downturns. Others have set up automatic investments but deliberately chosen platforms with poor mobile apps to reduce the temptation of constant monitoring. The naturally cautious can utilise their risk aversion as a strength by focusing on quality companies with strong balance sheets and predictable business models. Their reluctance to take excessive risks, whilst potentially limiting spectacular gains, also protects them from spectacular losses. Those blessed with analytical minds should channel their abilities into understanding businesses rather than predicting short-term price movements. Study annual reports, understand competitive advantages, and assess management quality. But once you've made your investment decision, resist the urge to revisit and optimise constantly. Your analytical nature makes you prone to finding new data that contradicts your original thesis. Most of the time, this new information is noise rather than a signal. Set specific intervals—perhaps quarterly or annually—for reviewing your investments, and avoid tinkering between these scheduled assessments. The gregarious types who love discussing investments face a different challenge. Every conversation about markets becomes an opportunity for doubt and second-guessing. Consider limiting investment discussions to once a quarter, or confining them to a small circle of like-minded, long-term investors. Remember that most market chatter is designed to create urgency and prompt action, neither of which serves the patient investor well. For those who are naturally competitive, the stock market can become a dangerous playground. The urge to beat the market, outsmart other investors, or prove one's superior stock-picking ability can lead to excessive trading and unnecessary risk. Channel this competitive spirit instead towards beating your past self—focus on improving your savings rate, reducing unnecessary expenses, or lengthening your investment time horizon. Also Read: GenAI for investing: Smart money moves or risky bets? The detail-oriented personality faces the trap of analysis paralysis. While thoroughness is generally beneficial, waiting for perfect information before investing means never investing at all. Markets are forward-looking and inherently uncertain. Accept that you'll never have complete information, and focus on making decisions with adequate rather than perfect data. Build systems Perhaps most importantly, recognise that successful investing requires embracing paradoxes that go against many professional instincts. Sometimes the best action is inaction. Often, boring is better than exciting. Frequently, simple beats sophisticated. The very qualities that make you successful in your career—quick decision-making, constant optimisation, competitive drive—may work against you in the investment arena. The market rewards patience over intelligence, consistency over brilliance, and emotional stability over analytical prowess. This doesn't mean analysis is worthless—it means analysis without the right temperament is often counterproductive. The most sophisticated spreadsheet in the world won't help if you panic and sell at the first sign of trouble. Your personality isn't your destiny as an investor, but it is your starting point. Work with your nature, not against it. Build systems that make good behaviour automatic and bad behaviour difficult. Remember, the goal isn't to become a different person; it's to become a better investor whilst remaining yourself. The most successful investors aren't those who've conquered their personalities, but those who've learned to dance with them. Dhirendra Kumar is the founder and chief executive of Value Research, an independent investment research firm.
Time of India
4 days ago
- Business
- Time of India
Edelweiss Mutual Fund crosses Rs 1.50 lakh crore AUM: Radhika Gupta shares Rs 150 coin
Edelweiss Mutual Fund has crossed Rs 1.50 lakh crore of AUM , the CEO Radhika Gupta posted on social media, observing that milestones aren't the end, they are the moments that reassure, energize and inspire. Rs 1.5 lakh crore of AUM reflects the strength of our foundation and confidence in our future, the fund house said. Thank you 🙏 — Radhika Gupta (@iRadhikaGupta) May 27, 2025 Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » In another post the CEO shared a video showing a Rs 150 coin which she feels privileged one to have. Also Read | An underrated solution, finding its due: Radhika Gupta reacts on tax-efficient options beyond equities Live Events She posted on social media X that, 'Celebrating our 150 with a mega 150! 150,000 crores of AUM for @EdelweissMF , a young financial institution celebrated with 150 years for @bseindia , an iconic financial institution. This coin - legal tender of 150 rupees - is one I am privileged to have. Iconic and for the ages.' Edelweiss Mutual Fund has achieved Rs 1.50 lakh crore AUM coinciding with the BSE 's 150-year legacy. Celebrating our 150 with a mega 150! 150,000 crores of AUM for @EdelweissMF , a young financial institution celebrated with 150 years for @bseindia , an iconic financial institution. This coin - legal tender of 150 rupees - is one I am privileged to have. Iconic and for the… — Radhika Gupta (@iRadhikaGupta) May 27, 2025 Gupta in her earlier post said, 'An underrated solution finding it's due! For the last two years we have worked to provide a tax efficient fixed income alternative in Edelweiss Multi Asset Allocation Fund using arbitrage in various asset classes. The track record of both returns over 1/2Y and risk (no negative months) speaks for itself.' With stock prices running high, cautious investors are staying away from the market but for wealthy investors looking for tax-friendly options outside of stocks, some new mutual fund strategies are proving to be attractive choices on which Radhika Gupta, CEO of Edelweiss Mutual Fund says that an underrated solution is finding its due. Also Read | Nifty up 13% from April's low. How should mutual fund investors alter their investment strategy? She posted a photo of a news article which was published in ET saying, 'Top tax-efficient MF strategies for risk-averse investors.' The news article was about categories such as arbitrage funds, income plus arbitrage FoFs, multi-asset allocation and precious metal funds (gold/silver) are gaining traction as these funds typically avoid direct equity exposure while offering better post-tax returns than traditional fixed income. The ET article mentioned that multi asset allocation funds that can invest in diverse asset classes if held for two years, the gains are taxed at the rate of 12.5% and if held for less than two years, the gains are added to the investors' income and are taxed as per slab rates. These funds are used by investors as debt allocation for tax efficiency and Edelweiss Multi Asset Allocation Fund was the top scheme with 9.27% return in a one year period.
Economic Times
4 days ago
- Business
- Economic Times
Edelweiss Mutual Fund crosses Rs 1.50 lakh crore AUM: Radhika Gupta shares Rs 150 coin
Edelweiss MF hits ₹1.5 lakh crore AUM, celebrates BSE 150, and promotes tax-efficient multi-asset strategies for conservative investors Edelweiss Mutual Fund has crossed Rs 1.50 lakh crore of AUM, the CEO Radhika Gupta posted on social media, observing that milestones aren't the end, they are the moments that reassure, energize and 1.5 lakh crore of AUM reflects the strength of our foundation and confidence in our future, the fund house said. Thank you 🙏 — Radhika Gupta (@iRadhikaGupta) May 27, 2025 In another post the CEO shared a video showing a Rs 150 coin which she feels privileged one to have. Also Read | An underrated solution, finding its due: Radhika Gupta reacts on tax-efficient options beyond equities She posted on social media X that, 'Celebrating our 150 with a mega 150! 150,000 crores of AUM for @EdelweissMF, a young financial institution celebrated with 150 years for @bseindia, an iconic financial institution. This coin - legal tender of 150 rupees - is one I am privileged to have. Iconic and for the ages.' Edelweiss Mutual Fund has achieved Rs 1.50 lakh crore AUM coinciding with the BSE's 150-year legacy. Celebrating our 150 with a mega 150! 150,000 crores of AUM for @EdelweissMF, a young financial institution celebrated with 150 years for @bseindia, an iconic financial institution. This coin - legal tender of 150 rupees - is one I am privileged to have. Iconic and for the… — Radhika Gupta (@iRadhikaGupta) May 27, 2025 Gupta in her earlier post said, 'An underrated solution finding it's due! For the last two years we have worked to provide a tax efficient fixed income alternative in Edelweiss Multi Asset Allocation Fund using arbitrage in various asset classes. The track record of both returns over 1/2Y and risk (no negative months) speaks for itself.'With stock prices running high, cautious investors are staying away from the market but for wealthy investors looking for tax-friendly options outside of stocks, some new mutual fund strategies are proving to be attractive choices on which Radhika Gupta, CEO of Edelweiss Mutual Fund says that an underrated solution is finding its due. Also Read | Nifty up 13% from April's low. How should mutual fund investors alter their investment strategy? She posted a photo of a news article which was published in ET saying, 'Top tax-efficient MF strategies for risk-averse investors.' The news article was about categories such as arbitrage funds, income plus arbitrage FoFs, multi-asset allocation and precious metal funds (gold/silver) are gaining traction as these funds typically avoid direct equity exposure while offering better post-tax returns than traditional fixed ET article mentioned that multi asset allocation funds that can invest in diverse asset classes if held for two years, the gains are taxed at the rate of 12.5% and if held for less than two years, the gains are added to the investors' income and are taxed as per slab rates. These funds are used by investors as debt allocation for tax efficiency and Edelweiss Multi Asset Allocation Fund was the top scheme with 9.27% return in a one year period. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Mint
4 days ago
- Business
- Mint
Ask yourself these questions to avoid emotional investing
Investor behaviour hasn't changed. There was a sense that investors are getting rational and thinking long term, but a sustained drawdown proved that not much has changed. Despite access to more information and better financial literacy, investors still exhibit the same emotional tendencies: fear, greed, overconfidence, herd behaviour, and loss aversion. Basic instincts Emotions override logic. Else investors would not be asking about continuing SIPs (systematic investment plans) or switching from equity to gold. These questions often stem from a desire to feel in control during uncertainty. Gold may be a hedge in uncertain times, but switching purely due to short-term fear ignores the long-term growth potential of equities. SIPs are designed to average out market volatility and work best when continued during downturns. Yet investors forget these simple mantras; they've continued to display loss aversion over the last few months. Products are still chosen on gross returns. Are gross returns the right way to assess a product? Take the case of low-rated, high-yielding corporate bonds, where investor interest has been rising. Individuals believe that they are at lower risk in corporate bonds than in equities, as they give similar returns but without the volatility. However, low-rated bonds carry a huge default risk, and even though they may be secured, it is well-known how tough it is to get back money in the case of a default. Just relying on high gross returns, in most cases, is fatal. Also Read: Inside Edelweiss MF CEO Radhika Gupta's plan to build over ₹10-crore—and how she's investing to get there The vast amount of financial information can overwhelm investors. Social media and real-time news amplify this effect today. This leads to overconfidence and an illusion of control. Take the case of the NPS Tier 2 account. Investors often boast about using these accounts to park short-term funds. However, given that there is an equity component in the national pension system (NPS), can the Tier 2 account be used like a liquid fund? It is like investing in a balanced fund for five years, when the funds are actually required in the next few months. Investors' short-term focus is one of the most common and damaging behavioural tendencies in investing. Despite long-term goals like retirement or building wealth, many investors behave like day traders, reacting to weekly market swings and news headlines. Long-term products like the NPS Tier 1 are shunned due to the inability to withdraw funds as needed. Long-term goals are basically being left to God's mercy. Finally, the infatuation with exotic products, which in most cases are not regulated, is baffling. At one end, individuals panic at the slightest volatility in equities and at the other end, they go ahead and invest in things like managed farmlands or renewable energy assets. These farmlands or renewable assets are spread across the country, typically in remote areas. It is surprising, then, to hear investors asking about the safety of gold exchange-traded funds, just because they aren't tangible like jewellery. Also Read: GenAI for investing: Smart money moves or risky bets? All of these cognitive biases, such as confirmation bias, recency bias, and anchoring, lead investors to not use logic in financial decisions. Take a step back and question Whatever the situation, investors must ask themselves the following questions: Is the product regulated? No regulation means no grievance redressal or regulatory oversight, which can prevent misdoings. A majority of Ponzi schemes that went bust were unregulated, and investors couldn't recover their money. Does the product align with the individual's financial goals? What purpose can this product be used for? If the financial product is not mapped to the right purpose, it doesn't really serve a need. One of the reasons investor returns lag the fund returns in equity mutual funds is that the investments are exited in short timeframes, thus not achieving the expected returns. What is the worst that can happen with the product? Can one lose the entire investment? How easy would it be to exit if the product doesn't work out? Remember how AT1 bonds of banks sold as safe bank bonds didn't pay back investors? Investors got into these bonds without understanding the minute clauses and lost their funds. An add-on question would be: Have the goals or time horizon changed? In times of market stress or on the upswing, when there is a strong temptation to make impulsive changes, this is the most grounding question an investor can ask. What's the real cost of the investment? Are the returns compensating for the risk being taken? Most high-returning guaranteed investments seem to give great returns but carry 10x more risk. Thus, the question arises whether the returns are justified. Also Read: Mint Quick Edit | Will value investing survive Buffett's bow-out? Finally, what is the investor's ability to handle the investment? Stock trading, managed farmlands, and cryptocurrencies may sound great, but they require deep understanding and monitoring. Do investors have the time and capability to do so? In investing, your greatest edge isn't superior knowledge, it's superior self-control. Mrin Agarwal is the founder-director of Finsafe India.
Time of India
4 days ago
- Business
- Time of India
Aditya Birla Sun Life Balanced Advantage Fund turns Rs 10,000 SIP to Rs 1.6 crore in 25 years
Aditya Birla Sun Life Balanced Advantage Fund has turned Rs 10,000 monthly SIP to more than Rs 1.6 crore in the last 25 years. That implies a compounded annual growth rate (CAGR) of 11.7% during the same time. The fund, launched on April 25, 2000, caters to investors seeking long-term growth potential and upside of equity, but at lower volatility levels. Aditya Birla Sun Life Balanced Advantage Fund balances the equity and fixed income exposure basis market valuation to generate a reasonable return with relatively lower volatility, according to a wealth creation study by the fund house. Also Read | Nifty up 13% from April's low. How should mutual fund investors alter their investment strategy? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trekking pants for mountain sports and adventure travel Trek Kit India Shop Now Undo The dynamic asset allocation model automatically reduces equity exposure at higher valuation levels and helps mitigate volatility in returns. Historically, the fund has offered lower drawdowns and faster recovery compared to broader markets. It aims for consistent downside protection while still capturing meaningful upside potential. Since 2015, the fund has generated nearly 80% of Nifty's return with an average net equity exposure of almost 52% while experiencing only 66% of Nifty's volatility. Over a three-year rolling period, the fund has delivered returns above 8% in more than 86% of instances over the last nine years Live Events 'The 25-year journey of Aditya Birla Sun Life Balanced Advantage Fund is not just a performance milestone, it is a testament to the dedication of our team and the enduring confidence of our investors. The endeavour is to provide peace of mind to an investor by dynamically adjusting the equity and fixed income exposure and aiming to provide reasonable returns with lower volatility,' said A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC . 'The fund maintains a quality-biased portfolio and invests across sectors & market capitalisation to generate alpha. ABSLAMC is confident and committed to delivering a superior investment experience, and thanks all our investors and partners for their continued faith in bull as well as bear market phases,' he added. Also Read | An underrated solution, finding its due: Radhika Gupta reacts on tax-efficient options beyond equities The fund is jointly managed by Harish Krishnan, Lovelish Solanki and Mohit Sharma. It had assets under management of more than Rs 7,500 crore as of April 30, 2025. The regular plan of Aditya Birla Sun Life Balanced Advantage Fund has offered 9.77% CAGR since its inception, whereas the direct plan has offered 12.44% CAGR since its inception.
