scorecardresearchWant to be a good investor? Here are 4 key learnings from the investment journey of ace fund manager Pranav Gokhale

Want to be a good investor? Here are 4 key learnings from the investment journey of ace fund manager Pranav Gokhale

Updated: 02 Sep 2022, 12:07 PM IST
TL;DR.
You must harbor a growth mindset irrespective of which way the market sways. Pay attention to the numbers as they tell you a lot; cut out the noise and focus on companies’ earnings to make your buy and sell decisions.
A nimble mind will always make better investment decisions

A nimble mind will always make better investment decisions

Pranav Gokhale is not a new man in the mutual fund industry. A cursory look at this background and achievements underscores how this fund manager of Invesco Mutual Fund decides in perfect synchronisation with the stock markets.

He has over 17 years of experience, which includes over 10 years of experience in Indian equity markets and is currently serving as a Fund Manager at Invesco.

Prior to Invesco, he has worked with IL&FS as assistant manager - senior equity analyst, ICICI Direct as assistant manager – research, International Ship Repair LLC Fujairah as senior financial officer and Rosy Blue Securities describes his continued dabbling in the market. Agile and deft in making decisions, Pranav Gokhale shares investing lessons that can turn even the blockheads into smart investors.

Following is the list of his funds under the Invesco Mutual Fund House that have been ranked 1,2 and 3.

Name of the mutual fundCategory

Crisil Rank

Assets under Management (in crores)

Three-year returns (in%)
Invesco India Midcap (G)Mid CapRank 11,077.4093.9
Invesco India Arbitrage Fund (G)ArbitrageRank 2252.3613.0
Invesco India Infrastructure (G)Sectoral/ThematicRank 156.87104
Invesco India Multicap (G)Multi CapRank 358.675.80
Invesco India Multicap - D (G)Multi CapRank 377.8982.90
Invesco India Midcap - D (G)Mid CapRank 1244.85102.50
Invesco India Infra. -Direct (G)Sectoral/ThematicRank 132.68112.50
Invesco India Arbitrage -Dir (G)ArbitrageRank 2291.5415.3

Pay attention to the figures

Many people pay attention to macros and other unnecessary data. Not that you must not pay attention to them at all, but temporary fluctuations in the market due to them must be ignored. The idea is to pay attention to the companies’ cash flows. Focus on the company’s balance sheet and cash flow statement. The stock markets have borne the brunt of multiple global financial crisis situations. Only those companies with strong fundamentals bounced back within no time. Avoid the noise in the markets. Pay attention to what the data says. Rely only on hard facts supported by data. Speak to subject matter experts to understand where the market is headed; do not depend on spreadsheets alone.

Quick thinking helps

That unwarranted affinity to a particular stock will never help. Sticking to companies that do not serve your investment purpose is the biggest folly that many investors commit. The idea is to stay nimble. Avoid investing in companies that do not go well with your investment hypothesis. Sell them early to cut losses. Investing is about tempering your ego and reminding yourself to rely on hard facts alone. This will help you take the right investment calls. If you have gone wrong with your assumptions, do not fear to question them. Instead of being rigid, be flexible enough to change your opinions based on facts and information.

Do not ignore new companies

Not all startup companies perform as per your expectations. This does not mean that you write them off owing to their newness in the market. The new companies are more prepared to take on the incumbents. With expertise and technology on their side, these companies dare to take on the existing companies that need more turnaround time owing to the massive operational structure. To understand which companies will make a mark in the long run, study their modus operandi first. Check the technology they use and find out how the changing nature of technology would impact their businesses. Every crisis situation teaches you something.

For example, how investors had written off the chemical industry sector during the Covid-19 pandemic only to be surprised at its drastic transformation after a period. We all learned the hard way how emerging opportunities or macro tailwinds can be strong enough to lend enough opportunity to buy and hold on to multibagger companies than sticking to mere compounders alone. Sticking to sectors with macro tailwinds with high conviction will help you create wealth in the long run.

Take hard decisions

You cannot allow emotions to overrule your sanity. The key to successful investing is constant learning. You cannot evolve and change unless you are willing to learn something new every day. It involves a lot of hard decisions to hold on to stocks when others are selling them to earn short-term gains. You must have enough conviction to hold on to securities that will allow you to create wealth in the future.

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First Published: 02 Sep 2022, 12:07 PM IST