Edelweiss chief Radhika Gupta on cryptocurrencies, investment planning & much more

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While the stock markets touched an all-time high last week, the Indian economy is still under a cloud of uncertainty due to the ongoing pandemic. Interest rates are down and price of petrol and edible oil are equally high. In such a scenario, it is pertinent for an investor to be careful and strategic while putting money away.

“In this time, investors tend to panic and take wrong decisions in a hurry. When the market hits an all-time record, the investor’s mistakes increase equally. That is why steps should be taken thoughtfully,” Radhika Gupta, MD and CEO, Edelweiss AML, told Money9.

Don’t get influenced

While taking an investment decision, people often tend to adopt someone else’s way of investing. “Keep in mind that your age, your goals and your responsibilities can never be the same. Instead of copying someone, you should focus on your needs and goals. Always make long-term investments and don’t chase any trend,” Gupta advised.

Don’t run behind ‘one-year returns’

According to Radhika, it is very important for new investors to avoid their obsession with ‘one-year returns’ in mutual funds. Investing in any mutual fund after seeing the returns of 1 year is a wrong decision. These days MF returns are easily available on fintech apps and finance related websites.

“Returns up to 3 or 5 years give a true sense of any scheme. Especially if you are investing in equity schemes, then look at the long term returns and also invest for only those. One should look at the rolling returns which indicate the average on your annual return,” she asserted.

Stay away from cryptocurrencies as of now

“It is better to maintain a distance from cryptocurrencies if you don’t understand it just yet. I would not advise people to invest their hard earned money in this until there is clarity regarding the regulation of cryptocurrencies

She said there is no perfect time to start investing.

“If you want to invest, then do not wait for the right situation. Keep your focus on the wallet and invest as per your financial goals,” she added.