Everyone knows what it takes to become a good investor. Hardly, anyone follows. Market veteran Nilesh Shah is of the opinion that there is one Duryodhana inside every investor that keeps him/her away from choosing the right path to successful investing. Duryodhana was one of the main antagonists of the Hindu epic legend Mahabharata.
While sharing his views at the Business Today Market Summit in Mumbai, the managing director and CEO, Kotak Mahindra AMC said regular and long-term investment coupled with disciplined asset allocation are the only mantras to become a successful investor.
New investors have become Abhimanyu in the search of the next Bajaj Finance, UltraTech Cement or Infosys, said investor and author Basant Maheshwari. “The next heroes do not come easily and investors get stuck, with no space for the exit.”
How to become Rakesh Jhunjhunwala of Dalal Street?
Vijay Chandok, MD & CEO, ICICI Securities said that one should have the ability to take risks, identify trends ahead of others, stick to conviction and have the patience to become an investor like Jhunjhunwala.
On the other hand, Dhiraj Relli, MD & CEO, HDFC Securities added that passion and having a heart and soul is something that is needed to start. “With acquiring knowledge at regular intervals of time and making learning as the essence of investing, you may get close to Jhunjhunwala with these traits,” he added.
How to protect the downside in 2023?
Shah of Kotak AMC AMC said that proper asset allocation strategy and taking risks as per your ability can help you to protect your money.
“One should become an investor. Investment is like shaadi (long-term) while trading is like flirting (seasonal),” he said adding trading is a hard way to make money.
Shah further added that 2023 will be a buy on the dip market. “Be clear about your risk appetite and have your investment goal defined,” he said.
Sharing his views with new investors, Maheshwari added that losing money in the first couple of years is normal. “If you don’t lose money will not learn,” he said.
Benefits of T+1 settlement?
The Indian stock market will shift to a shorter trading cycle, T+1 settlement, on January 27. Relli of HDFC Securities welcomed the move and said this will make the market more efficient. “Other than China, we will be the second largest country to move T+1 settlement. Trust, efficiency and ease of doing business are the enablers that have added confidence in the participation of investors,” Relli said.
The market watcher is in favour to have better taxation for equities, particularly for long-term capital gains. “We do pay STT at the time of execution. It makes no sense to have long-term capital gain tax. It is double taxation. There is a need to relook at taxation and make equity a more attractive option,” Relli added.
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