The Hindu Business Line : It's not in the timing

The Sensex might have touched the 14,000-mark, but young investors "who are building a portfolio for the future" should not worry about Sensex highs while their stocks remain subdued, says Mr Arun Kejriwal, Director of Mumbai-based Kejriwal Research and Investment Services. "Their horizon and view should be different; they should put small sums of money and look at the big picture down the line."

Investors should also remember that to create a portfolio, investing in the market is important, not in a stock. If at any point one thinks that a stock has given good returns and met targets sooner than expected, it should be sold. But the rider put by Mr Kejriwal is that the money thus obtained should be reinvested in the market "either in some other stock today or some other day.

Discipline is important because a portfolio is not created in a day; it is built step by step with little amounts. A chunk of money suddenly available can also be used to bolster a portfolio, he says.

On whether an investor should invest directly in equity or go through mutual funds, he says, "I would always be biased towards direct investment because I'm from the investment world and I believe that what you can do with your money cannot be bested by anybody else. It may be a vested reply, but then You will always invest your money with a little more care than somebody else."

Mr Kejriwal advises youngsters not to be confused by the explosion of information; one analyst recommending a buy on the stock and another a sell. "They should remember that information is also marketing; a person talking on a particular stock might be marketing it," says Mr Kejriwal, adding that it takes both time and skill to decipher who is "marketing" a stock and who is giving you facts.

Investors should go by company Web sites "because for them corporate governance and disclosure are much more important than individuals talking on TV channels. Should a young investor go to a wealth planner ?

Wealth plannershave a threshold limit and "nobody will touch a portfolio less than Rs 10 lakh. So unless you've reached that stage, don't even consider going to such consultants," he replies.

Ideally, one should put 20-25 per cent of one's savings in equity and build a portfolio. His parting advice: There is no `right time' or muhurtham to begin investing. Any time is good time. If the market falls, don't panic; your horizon is not tomorrow but a lifetime.

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