The Hindu Business Line : Money-Talk

Mr George Van Der Merwe, 30, is the Chief Operating Officer at Sahara Computers and Electronics. With a Post-Graduate Diploma in IT and Management from South Africa, he started his career in IT Services and Consulting Business. He took over as Technical Director of Sahara Computers where he was responsible for setting up the IT Infrastructure. Mr Merwe's interests extend beyond technology to sports as well. He is an avid golfer and a cricket enthusiast. He shares his investing habits in a chat with Young Investor.

When did you start investing?

At a very early stage, I understood the importance of savings and investments in life. I made my first investment in mutual funds policy which was coupled to a retirement annuity in a low-risk portfolio.

Which was the first stock you picked, at what age and did you make money on it? Any learning from that experience...

I entered the market through mutual funds. Through my experience, I have learnt that one should always go for a brand and those who have never invested in equity market must always enter it through mutual funds. This would help minimise risk. As I believe in a sustainable growth, I never go for the easy shares with a high-risk margin on them but more secure portfolio with a slower growth path.

Have you followed any asset allocation pattern/strategy for your finances?

I have invested my money keeping my long-term goals in mind. My asset allocation pattern has been prepared in consent with my fund manager. keeping in mind the growth options and risk appetite. I have developed a balanced portfolio by allocating my funds in equity funds, high-yield bond funds and conservative money market funds.

Are you systematic in investing?

I am in favour of Systematic Investment Plan (in mutual funds) because it allows you to even out during the ups and downs of the market to give you better returns.

Do you have any specific return expectations on your portfolio?

The share market is unpredictable but the way I have invested, I expect a return of 11-13 per cent net of tax.

Do you entrust funds to a financial planner/portfolio manager or handle it yourself?

I strongly feel that we should always go for a brand in which we can find a good manager who can efficiently mange our funds. My work sometimes does not permit me to concentrate fully on my financial planning but I make it a point to be in touch regularly with my financial planner to keep myself updated. It is always better to leave it to the experts

Mutual funds performance that you are impressed with...

I am highly impressed with HDFC ELSS funds, Reliance Vision Fund, Reliance Equity Opportunities some SBI Magnum funds and infrastructure funds.

Your general view on investing in equities...

Before investing your money in equities one should always consider one's time horizon and risk appetite. By selecting the time-frame and risk factor, one can easily enter secondary equity market directly or take the mutual fund route. But I think primary market is more beneficial if you have just started investing .

Your advice for young investors...

I recommend the young generation to keep some money aside to invest in some (mutual) funds for their future benefit. They should be systematic in their investments and always go for a well-performing fund with the help of advice from experts. Do not expect to become rich quickly, as they say, "Easy come, Easy go"!

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