The Hindu Business Line : Money Talk

Mr Uday Zokarkar has had an interesting career. After a nine-year stint with the Times group, he set up a business, lifestyle and technology magazine in the US called Mantram, which was later acquired by a subsidiary of TV-18 India.

He also played a key role in setting up the first all-day desi radio station in the U.S WCNJ 89.3 FM, later re-branded as Dhoom FM 89.3. He also spearheaded the operation of BharatMatrimony.com and recently took up the role of Chief Business Officer at ClickJobs. Mr Zokarkar shares with us his views on investing.

When did you start investing? Did you start at an early age?

As soon as I got my first salary, I started investing/saving. I was 23 at that time and I think I was a little late.

What asset did you acquire first — a home, stocks or was it other investments?

My first investment was insurance policy. Within the first three years of my job, I bought a home. I did get it financed and I am glad that I took that decision. And, then, I picked up the first stock. So, it was in the order of insurance (life and medical), home and then stock.

What asset allocation did you start with and how has it changed over the years?

I am a conservative investor and, hence, started with property (home and land), insurance, equity-mutual funds, government tax-saving schemes, gold and cash.

The earlier years of my job, I focussed on property and insurance. Then, it was equity funds, government tax saving schemes, FDs and, of late, its a mix of gold, land and stocks. I believe in keeping three months of our expenses as cash in the bank.

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

I picked up Times Bank stock (now HDFC Bank) when I was about 25 and, yes, I made money on it. Pick up the stocks if it is backed by sound management and reputed company.

Future potential of the industry is also important while picking up the scrip. The face of Indian banking was changing at that time and Times Bank came out with its IPO.

What is your return expectation?

Since I believe in a mix of property, stocks-MF, insurance and cash/gold, it is a moderate ROI of 40 per cent consistently.

Some experts believe that young investors can afford a 70-80 per cent exposure to equity. Do you share that view?

I differ slightly. As I said, I am a conservative investor. I think one must balance the portfolio with adequate insurance, property and some cash at hand. If you understand the stock market and believe in cashing out at the right time, may be up to 60 per cent exposure on equity is a good idea, according to me. I have seen my friends burning their fingers in stock market ups and downs.

Any books on investing that have impressed you?

Not really. A regular reading of ET, Business Standard and Business Line is helpful. Occasional reading on Warren Buffett is very inspiring, but few can be like him or get that kind of exposure.

Finally, your advice on three things that budding youngsters should/should not do when they start off.

A must do is: Adequate insurance (life and medical), some investment in property (home or land), some cash-FD.

Just one word of caution that over-enthusiasm in stock market dealings can be dangerous unless you know the game. Moderate risk is fine unless you have lot of cash to burn.

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