‘Start saving early'

The habit of savings is best developed when young says Mr Pavan Kumar, Founder and Managing Director of Corporate Professionals, a merchant banking firm. In an interview with Business Line , he shares his experience and learnings from investing.

What are your top financial goals?

One, after I retire I should be able to earn sufficient income on my savings. Two, I should also have sufficient funds for my children's education. I should also have ample amount of money for taking care of medical expenses and treatment, if any. And last, but not the least, is to plan my retirement depending on whatever liabilities I currently have or will have in future.

How has your idea about money changed with time?

Well, I am from a middle class family and used to live in a small town of Kasganj. Initially, I struggled a lot for my studies as well. I have thus realised the value of money very well. So, while initially money meant a means to fulfil basic needs of life, it later turned to luxurious needs. But the focus now is on saving money for building a better future.

Tell us about your most successful investment, one which made the most money for you?

My most valuable investment is in real estate. Whenever and wherever I have invested in real estate, it has given me a good return as compared to equity investments.

One mistake in investing or saving that you regret?

Most of us invest in equities and mutual funds but we always do one mistake - we marry our stocks when the market is going up. This is at a variance to the basic concept of equity, which requires us to sell them when the market is going up and buy when the market is going down. My biggest investment mistake was that I didn't encash my equity investments when the market was at its peak.

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

I always plan my investments after doing proper research work and reading the market thoroughly.

I also listen to others but invest only after testing all the perimeters.

What has been your most important learning experience so far?

My most important learning is that one should start saving as early as possible. We shouldn't worry about how much we can save, but should try to create the habit. Savings by way of investing in SIPs is good. Also, everyone should start investing in medical and other insurance policies when they are young. Doing this at a young age makes these instruments cost effective and helps in increasing your savings as well.

Tell us about books or investment guru that inspired you to think out of the box?

Warren Buffet has always inspired me, as he's always had a different approach to investments.

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

Honestly, there is no limit to one's greed for money. But one should hope to create a corpus such that they aren't dependent on anyone. As such there is no fixed amount of wealth that I am expecting at the time of my retirement. But I am investing in real estate, and equities, such that their value grows with the time.

How do you plan your investments to beat inflation?

Well, my investments are basically into the real estate, equities and fixed income, such that a combination of their returns will help me in beating the inflation.

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

Create a habit for saving. Start with medical insurance at a young age itself. Also start SIPs early on, as it will always help you in beating inflation.

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