'Invest in all asset classes'

Ramanathan K

Past positions: Fund manager at Birla Sun Life Mutual Fund and vice-president (fixed income) at Lehman Brothers India.

Investment mantra: Buy when sentiments are down and sell during frenzy.

What is your view on interest rate movements?: Interest rates should go up in the short term due to inflation concerns. However, slowdown in economic growth should result in moderation in interest rates in the second half of the financial year.

Advice to small investors: Recent volatility should help Indian investors realise that we are no longer alone and insulated. Global forces of volatility need global approaches to risk management. Look at asset allocation (bonds and equities), style diversification (all caps and not just mid-caps) and geographic diversification.

THE ING INCOME FUND

Worst mistake small investors make: To adopt a short-sighted “get rich quick” approach by trying to time the market may succeed once or twice. But the truth is that no one can predict with consistent success where the market will head next.

Ramanathan K is Head-Fixed Income, ING Investment Management.