The Hindu Business Line : Money Talk

The concept of “value” is certainly not alien to Mr R. Subramanian, founder and Managing Director of Subhiksha Trading Services, who has founded an entire business franchise based on offering ‘value’ to shoppers!

One of the earliest retail chains in India to adopt the concept of discount retailing, Subhiksha has attracted institutional investors such as ICICI Ventures and also has plans to float an IPO\within the next couple of years.

After establishing its presence in discount retailing of groceries and food, Subhiksha has of late been making waves in the mobile handset market, offering established brands at attractive prices.

An avid investor, Subhiksha’s promoter, Mr Subramanian talks to Business Line on his experiences with investing over the years.

Aarati Krishnan

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

I have been investing in the financial markets since the legally permissible age!

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

As I had only limited funds in those days, it was primarily shares that I started with.

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

To me, home is a place where you live. So I do not tend to see it as part of an asset allocation plan, per se. My asset allocation in financial assets has been tilted fully towards equity as my time horizons for investment, have always been long.

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

I can’t actually recollect that! But if memory serves me right, it was sometime in 1984 when I was still in college. I do remember making some profits on it. As those investments were small, I did it more for the fun of investing and winning… that mattered more than what you actually won.

What is your return expectation?

I aim to generate returns that are at least 5-6 per cent better than the basic market index itself.

If you don’t aim for that, you might as well be safe with the index funds (funds that passively track the indices).

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

Yes, surely there is no reason for not doing that.

Any books on investing that have impressed you?

The Intelligent Investor by Benjamin Graham certainly is one.

Where Are the Customers’ Yachts? or A Good Hard Look at Wall Street by Fred Schwed would be the other book that impressed me.

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

Do not bet;

Do not bet big;

Do not trade on tips;