Video Editor: Mohd Irshad Alam, Sandeep Suman
Market Expert and co-founder of Basant Maheshwari Wealth Advisers, Basant Maheshwari spoke to The Quint on share markets and small midcap funds. In his interview, he explained his investment strategy which he says has served him well.
Sensex and NIFTY are on a high but smallcap and midcap shares fell drastically. Why are fund managers investing in small funds?
The falling market is like quicksand. It will pull you in as much as you try to escape it.Basant Maheshwari, Co-founder, Basant Maheshwari Wealth Advisers
Eight out of 9 small to midcap funds gave no returns in 2018. Only Basant Maheshwari’s Wealth Fund earned 10 percent. Let’s understand from him how to pick the right funds.
On the fluctuating market, Basant Maheshwari said, “In October, November and December, when the market went crazy, a Rs 40 share became Rs 80 and a Rs 80 share became Rs 150. We didn’t understand what to do because at some point of time we wondered if we were making a mistake.”
“We then decided to do what we know. If people grew by 40 percent in the market we grew only 30-35 percent and not 50 percent. We held onto our concept. It will be a mess if you switch shares according to the market. Your strategy should remain stable. You should stick to the strategy that has been making you money for the last 5,10,15 years. It will not be much of a problem,” said Maheshwari.
Why should the role of fund managers be transparent?
“A fund manager’s role is sacred. Transparency should be in the process. We cannot diminish your return or capital even in the worst kind of market. If I invest Rs 100, don’t decrease it to Rs 60 if you cannot increase it to Rs 120,” Maheshwari answered.
Watch the full video to know how you can pick the right funds and gain the maximum from the market.
(This video was originally published on Quint Hindi)
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