Bonds were my best investment

Namdev Chougule, Head – Fixed Income, J.P. Morgan Asset Management India, says that sticking to, and applying correctly, what he had studied proved a huge learning experience. He began his career with Darashaw Securities, and his stints have included Lotus India Asset Management, Bank of Bahrain & Kuwait, India and JM Financial Asset Management.

What are your top financial goals?

The one thing I have learnt about financial goals is that they are ever changing. When I was in college, I wanted to retire at 35. I’m almost 35 now and no where close to retirement, partly because I don’t want it anymore. Once your basic financial necessities such as house, car, reasonable savings, and so on are taken care of — which depend on your subjective definition of ‘enough’ — financial goals aren’t just a number. For me, goals signify a hunger for achievement.

What does money mean to you? How has it changed over time?

Money has always signified ‘challenge’ to me. As a child, it meant the challenge of buying a chocolate. As a fund manager, to make money for my investors and my employer; and as a person, to achieve my financial goals.

What has been your most important learning experience?

In December 2007, we had a cyclical systemic liquidity tightness in India and I had tremendous difficulty in selling assets to meet redemption pressures. As a risk manager, whatever I had studied about liquidity risk was actually being experienced by me at the time. The learning was so strong that I never compromised on the liquidity of my portfolios and then Lehman happened. We were probably one of the few fund houses which did not borrow to meet our redemptions and could sell assets to generate liquidity. I consider this as my most important learning experience.

How do you plan investments to beat inflation?

To beat inflation, I follow the basic tenet of investing – diversify across asset classes. Each asset class presents unique opportunities which can be leveraged if you invest wisely.

Which investment has made you the most money?

Going long on ten-year bonds in 2008 has been my best investment yet.

How do you plan your investments? Do you seek professional advice or do your own research?

I do my own research. I discuss the idea with select people and then take a decision.

Tell us about books or personalities that inspired you or helped you think out of the box.

I am inspired by those who have taken the offbeat path to success and have done unconventional things in their lives. There are great examples of such people across time from the great Shivaji to Shri Dhirubhai Ambani. Also, Jamie Dimon, CEO and Chairman of J.P. Morgan Chase has contributed immensely to my thinking as I look up to his strong ideals and acute business sense.

What material feature in your reading list?

I read research reports, articles on politics in magazines ( The Economist, Outlook, India Today ). My all-time literature favourite is Oscar Wilde.

What is your message on savings and investments for investors starting their career?

I think young investors should have clear cut objectives before they plan their investments. At the beginning of one’s career, one should think of investments first and savings second. A right investment decision will take care of savings.

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