‘Just buy, hold small and mid-caps for another 5 yrs’

 

 

 

 

 

 

The person who changed the business TV coverage scene by explaining the nitty-gritty of the share market in simple Hindi language shared his wealth creation mantra with the Nagpurians. He is no other than CA/CS Anil Singhvi, Editor-in-Chief of Zee Business. Singhvi said, “Investors should buy small and mid-cap shares and hold them for another five years. These companies are the ones that are going to give stellar returns and create wealth for them in the long run.” One of the most credible business journalists, Singhvi was speaking on the topic ‘Investment ki Pathshala’ on the concluding day of the ‘Conclave on Financial Markets’ organised by Committee on Financial Markets and Investor Protection, ICAI and ICAI Nagpur Branch, WIRC at Vanamati Auditorium, VIP Road, Dharampeth, Nagpur on Sunday. CA Neha Anand, Senior Journalist, Zee Business and CA Vaibhav Sanghvi, Co-CEO of Avendus Alternate Strategies shared the dais. All three were greeted with standing ovation. The hall was packed with CA aspirants, investors and general public.

 

Singhvi explained that there are various events that affect the share markets but the biggest event is the Lok Sabha elections which has already passed. So, now investors should look ahead and invest in themes or sectors they like and have confidence and faith in. The India growth story has just started, so investors should now get into shares that are available at cheap valuations. There are a lot of small and mid-cap companies with low valuations that can give multiple returns over a period of time. The valuations of listed companies are directly related to flow of funds being pumped in the financial markets. Domestic funds and foreign investors are pumping in massive amount of money in the capital markets because of robust growth the Indian economy offers. Also, the Government works as a big catalyst by bringing in bold reforms and policy support to all sectors in the economy. These initiatives will give big boost and further propel the share market to newer heights. “The share market is poised for another leap,” he mentioned.

 

At present, common people are investing large amount of money in the share market through mutual funds or systematic investment plan (SIPs) is mindboggling. If one looks at the market, they will see that every dip has been bought into by someone it could be MFs and FIIs. “Foreign Institutional Investors (FIIs) were selling their equity for the past few months. The India growth story is fundamentally very strong and they will have no choice but to come back and invest in the Indian stock market. This is a good opportunity for investors. They should diversify their investment portfolio in different sectors and companies. “Look at the long term investing to create wealth,” he pointed out. Apart from this, Singhvi felt that investors should not try to time the markets as it were unpredictable. Also, investors should invest with strict discipline and not take unnecessary risks. Do not panic during sharp corrections or events that will affect the share markets. Just ignore the news for some time and let the event pass by before making any move. “Do not think short term, but think long term. What is required is change of mindset,” he said. Investors may sell their investments when valuations are expanded compared to industry or sector peers, he added.

 

Anil Sanghvi told his life story on how he became a business journalist and TV anchor after passing out as a CA/CS. It was in 1993 when he started his career as a practising Chartered Accountant and there was news about the new stock exchange as the first dematerialised electronic exchange in the country. This made him curious and after meeting CA Nipun Mehta, he jumped into business journalism without any media or journalism experience or background. After this there was no looking back. At that time, he had one thing in mind and that was to make a mark in this field. The challenge was to bring business news in easy to understand and simple Hindi language into peoples’ living rooms because all the business news was dominated by English channels. A large number of people did not understand English jargons and long business terms. Being a Chartered Accountant made things easier to understand and make in-depth business analysis. The purpose was to tell the world that India is a rich, prosperous and powerful country.