Edelweiss AMC's Radhika Gupta decodes key investment mistakes one should avoid

Radhika Gupta, the Managing Director and CEO of Edelweiss Asset Management Company, on Friday, October 13, discussed the mistakes she made on her investment journey and, more importantly, the invaluable lessons she learned along the way. Additionally, she offered guidance to young investors on building lasting wealth.

Gupta emphasised that her number one lesson from her investment journey was the importance of listening to one's own voice and making investment decisions that are right for individual circumstances. She highlighted the challenge of navigating the noise in the modern social media-driven world, where tips and advice abound.

She recalled her initial investment experience in 2006 and 2007 when she heavily invested in equities, only to face the 2008 financial crisis. It was during this crisis that she realised the need for a more conservative approach due to the high-risk nature of her profession. Since then, she has prioritised asset allocation and tailored her investments to her specific needs and risk tolerance.

On the subject of investing early, Gupta acknowledged that even as an investment professional, she wasted a couple of years before starting. She stressed the downside of delaying the start of one's investment journey, which often leads to the fear of missing out (FOMO) and the temptation to take greater risks to catch up.

She encouraged individuals to begin with small amounts, such as Rs 500 a month, highlighting that this is a sum often spent on everyday expenses like Netflix subscriptions or coffee. By establishing a habit of investing, targeting a specific post-tax portion of one's salary, and using systematic investment plans (SIPs), she urged young investors to start early and benefit from the power of compounding.