The Hindu Business Line : Her `share' of success

Cynthia Zacharias, a Kochi-based equity investor, has made it good in the stock market with sound practices of prudence. Her advice to women: Invest in equity; it keeps the mind alert.

This woman investor thinks that homemakers with some time to spare to read, watch television and monitor their portfolios should invest in equity. "Investing in equity keeps the mind alert and is bound to give a woman a feeling of self-worth. I don't know if women will like my saying so but instead of gossiping or attending kitty parties, women should invest in equity," says Cynthia Zacharias, a Kochi-based equity investor.

An MBA from Kochi University, she feels that "more than men, women are more prudent at money management and will do well in the equity market."

She herself has been a successful investor, and though she has held on to her shares for long years, she has recently begun to trade in equity through the Internet. Though not a day trader, sometimes she does buy and sell in a day, but only after strictly following two principles. She never shorts a share she does not have in her portfolio, so she can give delivery if it goes above her sale price. If the price of what she has bought falls, she makes sure she has enough money to take delivery.

"Trading can be fun if you follow these principles, but you have to be level-headed and disciplined. Let others make lakhs or crores; you should be happy with your Rs 2,000 or Rs 5,000 profit a day, and you'll be fine. It's not only a lot of money, it's also good fun and keeps your mind alert. Only, you have to beware against addiction," she says.

On a recent day, when the market fell by over 265 points, and showed heavy fluctuations the previous day, this smart investor "simply kept out. I didn't do anything. I don't go by tips and am invested into companies with good fundamentals, so I'm not worried. And I had started booking some profits after the Sensex crossed 8200. Now I'm watching; if the prices fall further, I will be a buyer, because I have full faith in the Indian equity market."

But then Cynthia has grown up on a diet of equity. Her father, a retired chief engineer, had always invested in equity and from a young age "I grew up listening to stock talk. He applied in many IPOs in our names — my sister's and mine — and we too got interested." Her sister is now working in the Dubai branch of Geojit Financial Services.

In 1986, both she and her father applied for membership of the Cochin Stock Exchange and got their cards at around Rs 10,000. "In 1987 it was the outcry system, and I had five to six years of real fun!"

When she started as a broker, she was one of the first women in the exchange but by 1991-92, when the stock markets were abuzz during the Harshad Mehta period, there were 70-80 women on the floor.

Even earlier, Cynthia had started building up her own portfolio by applying for IPOs of blue chips and Colgate, HLL, Britannia, Tisco and Reliance were some of the shares her dad and she were allotted. "I never felt like selling these shares and got good dividend and bonuses. I believe in the long term."

When Geojit came out with an IPO in 1995, "we applied and got the shares. When it came down to Rs 6, we bought more and didn't sell even when it went up to Rs 215. Later it again fell to Rs 16. Now it is above Rs 120; it has given us two bonuses and every year it gives 20 per cent dividend." As for the number of shares in her kitty, all she'll say with a smile is: "It's a good chunk."

Luckily for Cynthia, during the technology boom she was too busy helping out with her husband's business — they are dealers for Ashok Leyland, Thermax and L&T — to get into technology shares. So when the technology bubble burst in 2000, she was still sitting on blue chips.

But she does recall that during the Harshad days in 1991, "once my sister and I calculated our dad's portfolio and it was about Rs 1.5 crore! We said: `Let's go on a world tour after selling some shares.' But we didn't sell, and then the scam came and the prices started falling and ultimately a lot of it turned out to be just paper money!"

After 1996, she and her father sold their Cochin Exchange cards for a huge profit; "now of course it would have been worthless." They got out of the business of broking after 1993 "after losing a lot of money. In those days there was no margin money and the settlement period was two weeks; there were no circuit filters or price bands. When the going was good, people made money but when the crash came, many clients didn't pay and many brokers lost a lot of money in 1992-93," says Cynthia.

From 1996 to 2003 she was busy helping her husband in his business and though she is involved in the family business even today, she is able to set aside some time to trade and monitor her portfolio. "Actually only last month I started trading on the Net. My husband is interested in the portfolio, but has left it to my care. I've now started trading because with a terminal before you, you're able to get a better idea of the stock price movements."

She has been trading in midcaps and small-caps such as Prism Cement, Petronet LNG, Ashok Leyland, etc. "I buy and sell into fluctuations; at a time I buy or sell about 5,000 shares or so. Since I own these shares, and have the money to take delivery, I don't panic if the price goes against my trade. I believe that you can day trade and do well, if you have this kind of a back-up. It is only when you day trade without the stocks or the money that you can land into a problem."

But Cynthia follows one cardinal rule of investment. "I never ever go by tips. I watch television channels and read newspapers, but take my own decisions."

For a brief period she and her sister did dabble into Futures but gave up because "I found that when the price goes up we don't sell, and panic when the price goes down!"

She has not opted for either mutual funds (MF) or portfolio management system (PMS) "not because I don't believe in them, but because I have some knowledge of equity and doing it myself gives me a thrill! But for those who have no idea about equity investment, the MF route is the best."

She regrets that "most Indians are not aware of the investment potential in equity and only less than 3 per cent of our population invested in the market. Many people thought that the equity market is only for speculators. But once the market crossed 8200, they started asking: Should we invest. But at this level they might burn their fingers."

But she doesn't think that this is the wrong time to invest. "As long as you ignore tips, invest in quality companies and are careful, you can't lose. And I believe that being a contrarion can give you big profits. If the prices fall and you buy Infosys, you can't lose in the long run. But if you buy some vague company, then you're in danger."

A great believer in the India story, she is also encouraging her two sons to invest in equity. "I invest their money and they are gradually getting interested."

On the returns to expect from equity Cynthia says, "Now of course people are getting 40-50 per cent but an investor should be happy with 20 per cent. Where else can you get this kind of return?"

Picture by the author

Response can be sent to rasheeda@thehindu.co.in

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