Shark Tank India Season 3’s Radhika Gupta recently shared her insights on various financial topics, including SIPs, good CAGR in India, investment taboos, and other aspects. If you’re navigating the complexities of investments and financial management, her advice might be just what you need. In this article, we’ll explore the valuable insights provided by Radhika Gupta, CEO and Managing Director of Edelweiss Mutual Fund, covering topics such as investment strategies, SIPs, post-tax savings, and common investment taboos.
Radhika Gupta’s advice to young earning people
Radhika Gupta advises young earners to establish a post-tax saving goal early on. After calculating their expenses, allocating 5% to 10% of their income for savings and investing in an SIP monthly is recommended. Gupta emphasizes treating this saving as a non-negotiable expense, akin to taxes. The advocate of SIPs highlights the importance of adjusting the savings target as income increases. She suggests a balanced approach, stating, “I don’t believe 100% of your income should go to SIP. You have to live life, you have to enjoy life, you have to buy fancy cars. Please do all of that but do an SIP then buy a car.”
How much should good CAGR be?
CAGR, or compounded annual growth rate, refers to the rate at which an investment increases annually. When asked about what constitutes a good CAGR, Radhika Gupta, a judge on Shark Tank India 3, responds thoughtfully. She acknowledges the context of the conversation, noting that recent one-year returns on equities have been exceptionally high at 50%, leading to inflated expectations among investors.
Gupta expresses concern over these inflated expectations and provides a grounded perspective, stating, “Equities are supposed to give you about 12%.” She emphasizes the importance of maintaining realistic expectations in investment returns. Gupta further advises that investors who engage in SIPs in India, particularly in large-cap or mid-cap funds, can expect to compound their investments at around 15 or 16%, which she deems a commendable outcome.
Radhika Gupta on taboos that come with investing
The Managing Director of Edelweiss Mutual Fund observes a significant shift in investment taboos over the years. A decade ago, the Stock Market was often viewed as speculative, and in the 90s, only a small fraction of the middle-class population engaged in buying shares or investing in mutual funds.
Reflecting on the evolving landscape, she notes, “Today, there’s tremendous awareness about it. The Stock Market is a representation of companies and entrepreneurship. People witness India’s growth, observe companies expanding, and recognize the stock market as a convenient way to own a business without the responsibility of running one.”
As a judge on Shark Tank India 3, she emphasizes the importance of managing expectations through effective communication. By presenting both the upsides and downsides, she aims to offer a realistic perspective to investors. “Ultimately, money management is a business of trust. I don’t sell a product; I offer a promise,” concludes Radhika Gupta.
About Radhika Gupta
Radhika Gupta stands out as one of the most influential figures in India’s financial realm today, boasting an impressive trajectory. Her journey commenced as a Program Manager Intern at Microsoft, steadily advancing to her current role as Managing Director and Chief Executive Officer at Edelweiss Asset Management Limited.
As a Shark on the third season of Shark Tank India, Radhika Gupta made notable investments, clarifying that these ventures were undertaken in her personal capacity, separate from Edelweiss funds.
On the personal front, Radhika Gupta shares her life with Nalin Moniz, Chief Investment Officer – Alternative Equity at Edelweiss Global Asset Management. Together, they cherish parenthood with their son, Remy Gupta Moniz. A source of inspiration to countless women globally, Radhika often shares insights on balancing motherhood and a thriving career through her social media platforms.