The students of TAPMI were privileged to attend a session on Career Options in Investment Management by Mr. Rajendra Kothari. He started off with a couple of quotes by Benjamin Franklin and Warren Buffet before showing the students a short film called “One Idiot” by Anil Gupte. The movie elaborated on the importance of making SIPs or Systematic Investment Plans. It also stressed on the need to invest even small amounts as every amount, be it small or big, makes a big difference at the end of the tenure of the investment.
He spoke about how Indians are good savers but not good investors. They generally don’t have much idea of risk and returns and are comfortable investing in fixed deposits and government savings. Even if they do invest in equities, they have unrealistic expectations and end up pulling out before the investment period. Further, he stressed on the power of compounding and showed examples of how funds compound towards the later stages of its tenure to present the investor with a lump sum at the end of the period. More importantly, he stressed on how delays of even a few years can have a huge impact on the ultimate earnings of the people.
He also spoke of lifestyle inflation and how it works like a time bomb. Any money which can’t beat inflation is not a good investment, he said. He also gave examples of publicly listed banks and demonstrated how people are ready to save money and earn eight percent interest but not invest in shares of that company and earn returns of more than 25 percent.
“Investing is like watching grass grow, have patience”, is what Warren Buffet said. To end with he encouraged the students to follow four key steps to investing – start early, invest regularly, stay the course and get wealthy.