‘Invest for the long term'

For Neeraj Basur, Chief Financial Officer at Max Bupa , managing personal wealth and investment bets have always been a calculated execution of a well-thought out plan. A chartered accountant by profession, his investment advice is plain and simple – make a plan and stick to it. Excerpts:

What are your top financial goals?

My top financial goal is to provide for a comfortable living for my family and the best education for my children. I would also like to be financially able to engage in social welfare from a philanthropic perspective. My goal is also to obtain adequate insurance towards health, life and for my other assets to ensure that my savings remain protected over the long term.

How has your idea about money changed with time?

Money has never been the primary driver for me, however I do believe in spending wisely and planning for the future. Over the years, I have found myself investing more and more with definite goals in mind in line with different life stages.

Tell us about your most successful investment.

I generally invest for the long term (more than 10 years). The other criterion around equity investments that I follow is to never fund these investments through debt. Further, my equity investments are based on sound fundamentals of the business coupled with proven track record of high governance standards. Investments in the equity of ITC and L&T have been quite successful for me over last 5 years or so, following the above investment approach.

What has been your most important learning experience so far?

I think planned and long-term investments are the most important thing for your family's well being and secure future. As one grows older, one's medical expenses also tend to rise. Therefore it is very important to include proper planning for healthcare funding. In case one has children it is also a good idea make investments for their higher education. It is best to start saving and planning early in life, even if it is initially small investments, it will help ease out the need for huge savings at a later stage in life. Another important learning has been to assess specific needs before investing. Ask yourself – what am I saving for? How much money can I comfortably invest, without hugely cutting down on your day to day requirements and such.

What's the amount of wealth you hope to retire with? How are you creating this corpus?

I plan to retire with sufficient money to support my lifestyle and also take care of any additional/ unforeseen expenses that may come up. I would give more importance to the quality of my health and the peace of mind once I retire than holding any specific corpus target.

How do you plan your investments to beat inflation? Any asset allocation strategies that have worked wonders for you?

Planning the investments properly is very crucial with a conscious effort to invest in instruments generating inflation-beating returns. Equities come to one's relief here over the longer run. This category has continuously generated inflation-beating returns. Investment in mutual funds also gives a potential return to curb inflation in addition to quality wealth creation.

What's your message on savings and investing to young people just starting out on their career?

Firstly, start saving as early as possible. Even if it is small, it will pay you back big in the long run. Secondly, investments should be systematic and organised. This means you should be watchful of where your money is going. Thirdly, avoid getting into a ‘debt trap'. Taking debt to fund consumption or ‘non productive' assets should be avoided at all costs. Lastly, plan on providing for healthcare funding (insurance) early in life for yourself and your family and then stick to that plan for longterm.

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