The Hindu Business Line : Money Talk

Mr Jitendra Tanna, Vice President - Governance and Strategy Group, BI & Corporate Function, Fujitsu Consulting India, has over 15 years of experience in the field of information technology, including six years experience in Project Management and Specialized ERP consultation in the US. He shares his investing experience with us.

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

My first investment began with my first job way back in 1991.

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

Back then, when savings and disposable income were low, I invested in low returns liquid asset. Surprisingly, I am still yielding returns on those.

I had invested in Videocon Appliances and UTI stocks, both of which I still retain as the returns have been steady. In addition to this, I made sure that part of my salary made it to my recurring deposit account without fail every month.

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

As stated, the initial investments were on low-return liquid assets such as recurring and fixed deposits. Over the years, the nature of investments has changed into long-term high returns real-estate and stocks.

In my opinion, there is no ideal investment mix. The mix would depend on an individual’s profile and it should be flexible enough to respond to changing market conditions.

My current mix is 35 per cent each in real-estate and equities each with the balance spread over recurring and fixed deposits.

What is your return expectation?

I would say 4-5 per cent or even 10 per cent on liquid investments. One, of course, expects higher returns on long-term investments, depending on the current PLR.

As an investor, I would naturally seek high returns on money I set aside for the future every year, preferably higher than the prime lending rate. For example, for the last two years or so, mutual funds have been giving a 15 per cent per annum return, which is higher than fixed deposits or bonds.

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

The investment trend has changed in the last couple of years. The risk appetite has increased among young investors.

Any books on investing that have impressed you?

I keep a tab on market movements through newspapers and magazine articles which focus on the sector. There is no particular book that has helped me with my investments.

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

Do not panic when market fluctuates.

Save at least 20 per cent of your income.

Focus on long-term investments rather than short-term gains.

More Stories on : Investments | Young Investor | People

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page