Money Talk

Mr Tushar Agarwal, CEO of the financial services and investment banking firm AGROY, has spent over 12 years in the Indian stock markets. His experiences over the years have taught him many lessons on investments . Read on as he shares with Business Line his ‘cheat sheet' on investments.

What are your top financial goals?

My top financial goals are to get reasonable returns with adequate safety on my investments. I am generally quite happy with a yield of above 18 per cent on my investments and prefer to book profits if I achieve it.

How has your idea about money changed over the years?

At a young age, like with everyone I guess, money meant big house, big cars, the latest gizmos etc. However, now I view money as a tool to earn more money, as more money means a secure future.

Tell us about your most successful investment - the one which made the most money for you.

When I was very young, the most successful investment I made was in Bajaj Auto. At that time, it used to be one of the most sought-after blue chips and had an excellent track record of dividends and bonus. I could see my investments multiply with Bajaj Auto! And that really gave me more confidence to enter this field. Subsequently, Reliance Industries is a stock which I have cherished and nurtured. It has continued to give me good returns with adequate safety.

One mistake on investing or saving that you regret?

Most investment mistakes committed by me have been in real estate. I have usually invested in the best real estate opportunities, but the timing of exit has not been correct.

What has been your most valuable learning experience so far?

In the long run, if you are able to generate a return of 15-18 per cent on your investments, then you have done a great job. Most short-term gains are usually also offset by short-term losses and mistakes. Hence, whenever you invest, you must set a target and then actively book profits as per the targets.

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

It is extremely difficult to put a figure to this. However, I hope to retire a happy man with enough wealth to take care of my wife and I. If my current investments in stocks and other fixed income instruments give me a return of approximately 18 per cent, I should be able to create the desired corpus.

How do you plan your investments to beat inflation?

Around half of my investment is in fixed income securities like PPF and Fixed Deposits. The balance half is invested in real estate and stocks. I usually invest only in large cap stocks, which have a steady record and are usually able to give stable returns.

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

While investing, two important considerations to be kept in mind are liquidity and knowledge. At the end of the day, you don't want to invest in something you can't easily get out of or you don't know anything about And real estate usually looks very attractive but one needs to be very cautious about liquidity and transparency.