Quote Of The Day: Edelweiss MF's Radhika Gupta On Markets - 'Corrections Come Like Cats, Be A Goldfish Investor'

(MENAFN- Live Mint) Amid the volatile markets and disruption in safe haven prices, Edelweiss mutual fund chief Radhika Gupta has explained her 'goldfish' philosophy that can benefit retail investors during volatile markets.

In a follow-up post on social media platform X (formerly known as Twitter), the ace investor also shared a few handy tips for jittery followers but added that there is no“quick fix for a portfolio”.

At a time when safe haven options like gold and silver prices have tanked, Radhika Gupta assured investors that its“important is to silently keep swimming towards your goals”.

Also Read | Why Warren Buffett and Albert Einstein believe simple wins Radhika Gupta asks: Can you be a goldfish?

She wrote on X,“In a time when stocks, bonds and metals move violently, it may be a good time to revisit this thread (on goldfish investors). Cats are always on the prowl trying to disturb you as an investor... telling you to redeem midcap and move to silver (often at the worst time)... And vice versa. Can you be a goldfish?”

She linked below this, a thread originally posted on the same platform in September 2021, while the COVID-19 pandemic related lockdowns were being rolled back in phases. Here she explained her concept of a“goldfish investor”, using Ruskin Bond's Tales from My Heart as inspiration.

Why goldfish?“Goldfish are funny animals. They swim peacefully in their bowl. They don't bark or howl at night, they don't ruffle their feathers. They just keep taking circles of the bowl, in the same boring almost idiotic way.”

“One day a neighbourhood cat came by and admired the goldfish bowl. He had his own plans, to pounce on these unsuspecting little fish and have a little feast. He pounced, but lost his balance and nearly fell into the tank. The tank shook and some water spilled. But the goldfish stayed. The cat got scared by the splashing water and went away. He didn't return for a long time,” she wrote.

Also Read | Seahawks' Jody Allen to sell team after Super Bowl? Here is how much she's worth Why are goldfish inspiring for investors? Radhika Gupta says...

She further added that the goldfish also remained unfazed even when the water tank was refilled, asking,“Why am I writing about goldfish? Why should anyone admire such a boring animal?”

“Because goldfish are never agitated. They swim in silence, even when cats come and go, and they keep swimming forever. Be a goldfish investor. A lot of noise, news and social media is out there to agitate you, make you squirm and scream and change direction. Don't let it get to you. Corrections come, like those neighbourhood cats. But they also end,” she advised.

The lesson from this story according to Radhika Gupta is that while“your portfolio may gasp, markets do settle back to equilibrium, just like the water bowl. What's important is to silently keep swimming towards your goals.”

Also Read | Here's why purchasing a Harley-Davidson bike could get cheaper in India 'Market corrections are like board exams'

Over the past few days, Radhika Gupta, who is very active on social media has spent time online pacifying alarmist tendencies among common investors. One simple rule of thumb - do nothing. Another she posted on 9 February, advised stakeholders to view market corrections“like board exams... Painful, but extraordinary teachers”.

She extolled the benefits of taking the lessons learnt and moving on instead of overthinking results.

She noted that over the past few months, many including family, friends and folks in general ask her: "I have 30,000 to invest, should I buy silver? What fund do I buy?"

Adding,“It is probably because volatility is so high across asset classes, returns over the last year have been muted to negative for some, and noise and confusion prevails. The reality is: neither me, nor anyone else, can give you a quick fix for a portfolio. Investment advice requires time and context,” she added.

Also Read | Nancy Guthrie's family gets $6mn Bitcoin ransom demand: How would they pay? The investment expert did share“few thoughts for everyone”:

• Educate yourself on the basics: Too many people want to buy funds, before learning basic finance. Diving before learning how to breathe, she noted.
• Make a personal investment statement: She advised investors to document your money situation and needs.“Cover four things - 1) income and expenses, 2) current investments and liabilities, 3) goals and timelines, and 4) your thoughts on risk – losing money,” she said.
• Go talk to a good personal finance professional - either MFD or investment advisor: She then says that once your assessment is complete, it is best to approach a professional and take this document to them as a starting point.“Talk to multiple folks if you want, and then find someone you are comfortable with,” she added.
• Do not rush to make a financial monument:“You don't need to have a direct stock portfolio, figure out whether to buy silver or find a PMS. All of this can wait till you find your feet,” she added.
• If you haven't started, start: For those not invested yet she feels that this is a good starting point. Adding,“If you have started and made mistakes, relax. Everyone does. The financial crisis of 2008 was caused by some very smart people making mistakes. You are allowed a few too. Relax, reflect and learn.”

“Market corrections are a bit like board exams... Painful, but extraordinary teachers. Pay the tuition fee, and move forward,” she added.

MENAFN10022026007365015876ID1110719296