Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, shared a simple yet powerful message at the India Today Conclave Mumbai 2024 — stick to disciplined, long-term investing. She calls this approach “Dal-Chawal Investing,” drawing a parallel to the staple Indian meal that provides steady, reliable nourishment. In the same way, Gupta believes that a simple, core investment strategy can help investors ride out the market’s ups and downs.
Amid the buzz of record-high stock markets, Gupta urged caution and balance. While India’s booming IPOs and growing mid- and small-cap companies are creating excitement, she emphasized the need for a solid foundation in every investment portfolio. According to her, “80% of your portfolio has to be dal chawal,” or low-risk, dependable investments that can sustain long-term growth.
In contrast, she warned against overloading on what she refers to as “pickle and chutney funds” — high-risk investments that might add flavor but could cause financial indigestion if overused. Gupta noted the increasing popularity of Systematic Investment Plans (SIPs), especially among the younger generation, who are just as eager to invest as they are to spend on concerts or the latest tech. This, she says, reflects a growing confidence in the stock market and its potential for sustained growth over the next 5-10 years.
Alongside Gupta, other market experts weighed in on the topic. Navneet Munot, MD & CEO of HDFC Asset Management, highlighted the remarkable rise of the Sensex, from 400 points to 85,000, and called India’s market growth an “economic miracle.” He stressed the importance of patience and the influence of domestic retail investors, whose strength is reshaping the market landscape.
Manish Chokhani, Director of Enam Securities, also touched on the enthusiasm around small-caps and the SME sector, acknowledging their potential but also warning of the risks involved. He echoed the importance of discipline, urging investors to maintain a balanced asset allocation to ensure long-term success. “Stay on the wicket, keep your focus, and don’t leave the playing field,” he advised.
Together, the panellists emphasized the need for a steady, disciplined investment strategy, even as the market continues to buzz with excitement.