Stay invested in the Indian growth story: Financial experts at TechSparks Mumbai

Financial experts unanimously recommended staying invested in India for long-term wealth creation during a panel discussion at the recently concluded TechSparks Mumbai, YourStory's flagship startup tech event.

The panel on 'Advanced Strategies for Wealth Creation' included stakeholders from the wealth management sector: Ujjwal Jain, CEO of Share.Market; Ashish Singhal, Co-founder and Group CEO of PeepalCo; and Vaibhav Porwal, Co-founder of dezerv..

The financial experts shed light on navigating through various asset classes, providing valuable insights into investment approaches and the influence of behavioural finance.

Porwal, Co-founder of Dezerv—a Mumbai-based portfolio management startup—highlighted the growing excitement around investing, with previously exclusive and high-end investment options now accessible to a wider range of investors.

However, “It's important that investors understand the risk aspect of investing. Also, they should try and understand each of these (investment) instruments in relation to their investment requirement,” he said, emphasising the importance of choosing the right investment products that align with the investors' risk-taking ability and requirements.

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Ujjwal Jain, CEO of stock broking company Share.Market, also delved into the importance of technology tools to identify asset classes and risk profiles of investors, among other factors.

He outlined a systematic approach to stock selection based on quantitative research principles, incorporating factors such as dividends, momentum, quality, value, market cap, and volatility.

The panellists further delved into alternative investment avenues, including private equity, venture capital, real estate, and cryptocurrencies. Jain emphasised the challenging risk-return dynamic of private equity and venture capital.

“It's not easy (making money in private equity) because building a business is way harder than you can imagine unless you go through that journey. So, private equity or venture capital is the riskiest asset class,” he said. 

He emphasised the need for prudent asset allocation and understanding the potential for significant returns, alongside the risk of capital loss.

On the topic of real estate, panellists offered diverse perspectives on the buy versus rent debate. While acknowledging the emotional value associated with homeownership, they highlighted the importance of considering individual circumstances and financial goals.

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“We can't look at it purely mathematically. Our primal instincts play out here where we seek security and owning a house gives us a sense of security,” said Dezerv’s Porwal.

He emphasised the role of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) as viable options for commercial real estate exposure, providing avenues for diversification within the asset class.

Speaking on new trends, Peepal Co’s Singhal spoke on the emerging role of digital currencies, stating “A lot of people may have overlooked that CBDCs (Central Bank Digital Currencies) are enabling fractionalisation and micro-transactions in various asset classes.”

He added that via CBDCs, it will be more viable to broaden access to various asset classes, opening up new opportunities for retail investors.

The stakeholders also shared their views on investment trends for 2024 and suggestions for new investors in the public markets. While refraining from specific stock names, the experts shred their optimism in the growing India story and the importance of staying invested for the long term.

They advised new investors to adopt a disciplined approach and consider options like mutual funds and ETFs for diversified exposure, underscoring the resilience of domestic investors and the current positive trajectory of the Indian market.