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Shark Tank India 3’s Radhika Gupta sheds light on SIPs, good CAGR, investment taboos, and more
Shark Tank India 3’s Radhika Gupta recently shared advice on SIPs, good CAGR in India, taboos surrounding investments, and other financial aspects. Read here!
The financial world is full of jargon and investment complexities that often are too difficult to understand. And if you are all too new and taking baby steps managing your taxes, investments, and portfolio, it might get overwhelming at times.
So, if you want some expert advice, you’re in luck today. In this feature, we delve into the invaluable advice offered by none other than Radhika Gupta, Chief Executive Officer and Managing Director of Edelweiss Mutual Fund. Read on to get her insightful perspectives on investment strategies, particularly Systematic Investment Plans (SIPs), post-tax savings, and investment taboos.
Radhika Gupta’s advice to young earning people
Radhika Gupta urges young people who just started earning should have a post-tax saving target. After calculating their expense, they should save 5% or 10% of their income and invest that in an SIP every month. They should think of it as a tax. The Shark has always been a strong advocate of SIPs and often shared tips on monthly SIPs.
She also suggests that as the income grows, they should revisit the post-tax savings target. “I don't believe 100% of your income should go to SIP. You have to live life, you have to enjoy life, you have to buy fancy cars. Please do all of that but do an SIP then buy a car,” states Gupta.
How much should good CAGR be?
CAGR stands for compounded annual growth rate. In simple words, it is the rate at which the investment grows every year. As the host asks Radhika Gupta what should be a good CAGR, the Shark Tank India 3 judge says it’s a good question. She goes on to answer, “We are having this conversation in a period where the last one year returns on equities are 50%, so people's expectations are whacked.”
She adds that it scares her and she gives an answer that people do not like to hear, “Equities are supposed to give you about 12%.” She believes investors should always have realistic expectations. “Honestly, you do a SIP in India into a large cap fund or a mid cap fund, basic funds, you will compound at 15 or 16 % and that is a damn good outcome,” concludes the Shark Tank India 3 judge.
Radhika Gupta on taboos that come with investing
The Managing Director of Edelweiss Mutual Fund believes that the taboos have changed. A decade ago, the Stock Market was seen as speculative. In the 90s, very few middle-class people were into buying shares or investing in mutual funds.
Talking about the change and current scenario, she said, “Today, there’s tremendous awareness about it. The Stock Market Is a representation of companies and it's a representation of entrepreneurship. People are seeing India grow, people are seeing companies grow and the stock market is the easiest way to own a business without actually running one.”
The Shark Tank India 3 judge also added that through marketing communications, she focuses on expectation setting, and making people aware of the two sides of the coin to show them a realistic picture. “Ultimately money management Is a business of trust. I don't have a product, I only have a promise to make,” concluded Radhika Gupta.
About Radhika Gupta
One of the most prominent figures in the Indian financial sector right now, Radhika Gupta has built an impressive portfolio. She started her journey as a Program Manager Intern at Microsoft and worked her way up to reach where she is today- Managing Director and Chief Executive Officer Edelweiss Asset Management Limited.
She joined the third season of Shark Tank India as a Shark and made some significant investments. It should be noted here that all the investments she made were in a personal capacity, and she didn’t use the funds of Edelweiss.
On the personal front, Radhika Gupta is married to Nalin Moniz, Chief Investment Officer - Alternative Equity at Edelweiss Global Asset Management, and together they have a baby boy, Remy Gupta Moniz. The Shark, who is an inspiration to millions of women across the world often talks about balancing motherhood and career on social media.
Stay tuned to Pinkvilla for more updates!
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