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'Control fear and greed'

'Control fear and greed'

Identify your financial needs and risk appetite before investing, says  Ved Prakash Chaturvedi, MD, Tata Asset Management.

Ved Prakash Chaturvedi
Ved Prakash Chaturvedi

Track record
Worked as chief investment officer for SBI Mutual Funds and as chief executive at Cholamandalam AMC.

Best call over the past few months
Avoiding the real estate, considering that the sector’s valuations and market expectations were out of sync with ground realities.

Worst call over the past few months
We should have increased cash more aggressively from April onwards when oil started spiralling.

Top picks right now
The infrastructure sector has potential over the next decade. Also, when the interest rate cycle turns, banks and financial services companies will come back into focus.

Worst mistake small investors make
Entering a bull market because of greed and getting out because of fear when prices decline during a market correction.

Advice to small investors
Do not invest directly in assets unless you have researched well. Identify your financial needs and risk appetite before investing. A simple thumb rule is to subtract your age from 90 and put this amount in equities as a percentage and the remaining in other asset classes. Invest systematically over a period and wait for the investments to mature.


— Ved Prakash Chaturvedi, MD, Tata Asset Management