The Hindu Business Line : Start early with small deals

Vikas Jawa is a Director with travel portal Zoomtra.com. He was earlier working with Bridge Consulting Group on the travel segment, which inspired him to start a travel search engine. Before Bridge Consulting, he also served as head of recruitment in companies such as Satyam and TCS in Canada. The 26-year-old holds a Bachelor’s degree in Arts & Economics from SRCC, Delhi University. An avid reader, he also likes travelling and gaming. Excerpts from an interview to Business Line:

When did you start investing?

I was keen at investing from an early age. My first investment, albeit a small amount, happened when I was 21. The stock market was intimidating at that time but I was eager to learn about it. Watching movies such as Wall Street and Boiler Room got me excited about the concept!

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

I had heard many success stories of people around me making serious money on the real-estate circuit.

However, since I was only 21 and didn’t have much to spare, my first investment was a simple and safe mutual fund. I was overjoyed to get my first dividend cheque (although it was a really small amount)!

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

My first investment was worth Rs 30,000. And over the years I have started investing more and more. Today I am investing at least 30 per cent of my annual income.

I still prefer safer instruments such as mutual funds and investment-linked insurance plans as I am unable to track the market on a daily basis.

My first investment in real-estate happened recently and I am on the lookout for more interesting opportunities in this space.

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

The first investment I made was the SBI Mutual Fund at an early age of 21. I made a small amount of money but more significantly, it gave me a confidence booster that paved the way for more investments in different institutions and assets.

Any books on investing that have impressed you?

I have read quite a few books on how to manage one’s money. However, I really appreciate the basic lessons offered by Rich Dad Poor Dad.

As you specialise in the travel business, what tips would you offer youngsters looking to save costs while planning their first trip abroad?

Most importantly, a traveller should plan well in advance. Research the Internet well as it usually provides the best deals. While travelling it is also very important to live like the locals rather than staying in an expensive hotel.

This gives the real experience of a destination. It is also important not to cover too many locations in one trip. On the one hand, this is expensive, and on the other hand it is not fulfilling.

Your advice on three things that budding youngsters should/should not do when they start investing.

Start at an early age and with small amounts to understand various options/instruments.

Don’t be afraid or concerned about making mistakes early on. They are bound to happen.

Never keep your investment strategy open-ended. Have a goal in mind and exit on its achievement or create a new visible goal.

BL RESEARCH BUREAU

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