Today’s guests have a deep insight into the world of mutual funds and investing. Mr. Harshad Patil, Vice-President and Chief Investment Officer of Tata AIA, and Rahul Singh Chief Investment Officer of Tata Mutual Fund, graced us with their knowledge and wisdom.
The conversation began with a discussion of the pandemic and the impact it had on the market. Mr. Rahul recollects the initial impact and the gradual redemption of the market. He talked about how different classes of people fared differently throughout the pandemic. Salaried workers had increased savings due to decreased expenses thanks to the “work from home” culture. In scenarios like this, one class had savings to dive into, whereas the SMEs and migrant workers suffered, and continue to suffer.
Mr. Harshad shared his opinion on the current product trends. Despite the increasing awareness, people were more hesitant to get themselves medically checked for COVID or other ailments. Now that fear has subsided considerably and the market has made a K-shaped recovery. The central bank cut policy rates drastically and hence the growth of the life insurance sector was much better in comparison to the rest of the industry.
When asked about their investment strategies, Rahul surmised that both greed and fear are essential ingredients to have to survive in the market. An investor must have a balanced approach toward his goals; the core principles for an individual investor are holdings and discipline. Investors these days prefer to be directly responsible for their assets, however, 90% of the totality do require advice for asset allocation, equity, and debt.
According to Harshad, the key to having a surplus retirement fund is to start early. Investing early enables an individual to accumulate enough wealth and assets to sustain their quality of life throughout their retirement. Rahul also added that there was no such thing as starting late, however, it came with its disadvantages. The goal is to beat inflation whilst maintaining your quality of life.
When asked about their portfolios, Harshad claimed that he has no such secret strategy. His strategy has always been simple and that is to start early. When he was younger, he focused more on the equity of the market, and now as an older gentleman, his focus is on a fixed income. He also claimed that he does his investment through mutual funds and never independently. Harshad also brings light to the advantages of the non-par product. The Non-par product assures tax-free return on a longer term along with term insurance. The risk of inflation and the free fall market is nullified as they are mostly carried by the firm.
Neither of them has an intention of retiring anytime soon. They continue to urge that retirement planning is vital to achieving financial freedom and security. Watch this insightful episode of Manage Wealth with Divya Tusnial with Harshad Patil and Rahul Singh on Manage Wealth show Youtube page.
