Radhika Gupta, MD and CEO of Edelweiss Mutual Funds, is popular among Indian investors, especially Gen Z, for her prolific online social media presence and easily understood investment tips and advice.
Over the years, Gupta has gained a following on X (formerly Twitter) and other social media for her stock market fundas, investment explainers, and easy-to-follow advice — be it on savings, investments, mutual funds or SIPs.
Among her latest posts on X is another simple rule of thumb that investors should stick to — consistency is key.
What investment strategy does Radhika Gupta advise you to avoid?
According to Gupta, “The most expensive fund is the one you bought for last year’s returns.” She added, “Return chasing feels rational. It’s usually late. Consistency looks boring. It’s usually effective.”
It’s not a completely new funda from Gupta. Earlier this month, she highlighted her ‘goldfish’ philosophy that can benefit retail investors during volatile markets, noting that at a time when safe-haven options like gold and silver have crashed, it is more “important to silently keep swimming towards your goals”.
Likening the volatile markets to “cats on the prowl trying to disturb you as an investor”, she added that staying calm like a goldfish is the wisest course of action.
“Goldfish are never agitated. They swim in silence, even when cats come and go, and they keep swimming forever. Be a goldfish investor. A lot of noise, news and social media is out there to agitate you, make you squirm and scream and change direction. Don’t let it get to you. Corrections come, like those neighbourhood cats. But they also end,” she stated.
‘Market corrections extraordinary teachers’
As per Gupta, market corrections are like board exams, “painful, but extraordinary teachers”. She also outlined a few basics for retail investors to follow:
- Make a personal investment statement: She advised investors to document your money situation and needs. “Cover four things — 1) income and expenses, 2) current investments and liabilities, 3) goals and timelines, and 4) your thoughts on risk – losing money,” she said.
- Do not rush to make a financial monument: “You don’t need to have a direct stock portfolio, figure out whether to buy silver or find a PMS. All of this can wait till you find your feet,” she added.
- Educate yourself on the basics: Too many people want to buy funds, before learning basic finance. Diving before learning how to breathe, she noted.
- Talk to a good personal finance professional with your personal investment statement. “Talk to multiple folks if you want, and then find someone you are comfortable with,” she added.
- And, if you haven’t started yet, do so now: For those not invested yet she feels that this is a good starting point. Adding, “If you have started and made mistakes, relax. Everyone does. The financial crisis of 2008 was caused by some very smart people making mistakes. You are allowed a few too. Relax, reflect and learn.”
- When markets are in turmoil, follow one rule — don’t react in panic. “The moves across equities, debt and commodities over the last month have been a real test of patience and the ability to stay calm in a storm. Those who have kept away from FOMO — positive and negative, watched a little less news, and stuck to their allocations will do well. Action is more expensive than we imagine,” she feels.
