‘Diversify asset classes'

Gold is an important means to help boost returns on investment, says Mr Anand Kuchelan, Vice President – Research, Padmakshi Financial Services who has over 8 years experience in the field of equity, derivatives and quant research. He has previously worked with players such as in PINC, where he helped set up the derivatives business.

What are your top financial goals?

I make my investments with one primary objective in mind, and that is to generate returns which are more than the Nominal GDP (real GDP Growth + Inflation). That would peg it at about 15-16 per cent.

How do you plan investments to beat inflation?

In my opinion, equities are the best asset class to beat inflation if you consider a long-term investment period. That said, I think anyone building a portfolio for retirement should ideally have a portfolio mix of equities and gold. This will go a long way in enabling them to beat inflation.

When did you start investing? How did you go about it?

Thinking back, my first investment was in Axis Bank, in 2004. That was the first stock I had tracked during the earlier years of my career. I remember that I was very impressed with the way the management was going ahead with growth plans for the bank. Mr P. J Nayak was the CMD then and his motto seemed to be generating value for shareholders.

They were aggressive in planning for growth but at the same time, they were very well aware of the risks that were being taken. The bank has been consistently delivering strong numbers every fiscal. This is also reflected in the share price… it has had quite a dream run!

How has your portfolio changed over the years?

From 2004 to 2010 my investments were predominantly in equities. But lately, I have brought in diversification by investing in Gold ETFs. Fixed income instruments have also been a crucial part.

What is your take on gold as an investment?

As I mentioned earlier, gold is definitely a part of my investments. In my opinion, it offers a cushion against inflation.

What is the one key learning that you take away from your investment experience?

The one key lesson I have learnt from my years in investing is to diversify asset classes.

Which investment has made you the most money?

Axis Bank. As I said, it was my first investment and I made over 200 per cent returns in that stock. Also in 2009, I had invested in Tata Motors around Rs 150. But later on, I exited after it reached Rs 500-levels as I thought the fear psyche was at its peak in the stock. However, I really salute the Tata Group for the way they have turned the company around.

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

Develop the habit of understanding the company whose stock they invest in. Keep track of investments. Spend time in analysing your investments– give it an hour or two over the weekend. Treat it like a business.

Where do you suggest a young investor go to find information on companies and learn about investing?

Since technology has changed drastically over the last ten years, investing has become a lot easier. Information is readily available through the websites of exchanges and others such as moneycontrol.com , myiris.com and so on. Other rich sources are annual reports and the balance sheets, notes to accounts. I would suggest young investors take a course on investment if possible which will throw open to them various options on investing.

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