Management of investor’s money in the stock market

How do you feel managing small savings of unknown investors? What are the challenges involved in the management of other people’s money? Investments management

It feels like a very responsible task, investment management. The pressure is always there to do justice to people’s savings. The main challenges are ensuring more discipline and consistency in regulating peoples’ money investment as compared to managing one’s own money. One has to maintain a proper balance between the risk and the returns.

What if your calculations go wrong and your portfolio incurs loss/performance of your fund is below average? Does it reflect on your behavior? Do you transfer your frustration on your wife/children on such days?

It is very crucial to reduce the emotional element in the investment management sphere. I have always known that not all investment strategy hit the bull’s eye. Yes, but the focus is always on learning to invest from the past mistakes and improving upon them. I like to be dispassionate about performance – whether good or bad. I would rather concentrate clinically on further future improvement.

Has it ever happened that some investor applauded investment advisors for their excellent performance or send derogatory mail for incurring a loss?

I have had my fair share of bricks and bouquets.

Are you averse to risk undertaking or does the prospect of picking up a risk thrill you? Please share your experience where a certain speculative decision of yours has been awarded/ or your safe playing streak has saved your investors financial investing from a heavy loss.

Undertaking a risk is an important element for generating returns, but one has to take measured risks investor finance in line with the mandate of the fund.

Entry and exit timings are supposed to be the deciding factor for stock market investor. How does one time the market? Do you repent when you fail to enter/exit the stock market investments at the right/wrong time? Is there ever any feeling of disappointment or frustration?

I strongly feel that one cannot ‘time’ the stock market invest. Most equity funds are usually always fully invested, as that is the mandate given by the investor when he investing money in equity fund.

Instead of timing the markets and second guessing market levels- it is important to have an appropriate stock and sector selection strategies as a response to how comfortable you are at various market levels.

Equity investing is the best long term investment. It is important not to miss the larger picture of being invested and spending ‘time’ in the markets rather then ‘timing the markets’.

Given the kind of stress you are constantly under, are you rewarded suitably? Would you like your child to become a Wall Street investor?  

I love my high intensity job, and there is no stress. I always look forward every morning to get to office and for the markets to open.

Market volatility and dealing with scores of complex issues/factors has become a way of my life.

What is your favorite pass time? How do you work out to lessen stress?  

Reading is my favorite pass time. I prefer anything in non-fiction and has very little to do with investor personal finance in stock markets.

What do you expect from the investors? Do they in return over expect from you?