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DAILY VOICE | Trust power of compounding! Sensex delivers 50-bagger return in 30 years: Prathit Bhobe, Tata AMC

The government’s focus in the upcoming Budget is likely to be on providing acceleration to the economic recovery which has been underway over the past few months, says Bhobe.

January 29, 2021 / 10:23 AM IST

Prathit Bhobe who has about two decades of experience in the capital market says that there is a temptation for investors to cash out when they see a return. One feels rich by cashing out, but one becomes wealthy by compounding, he said in an interview with Moneycontrol’s Kshitij Anand.

Bhobe who is a CEO & MD, Tata Asset Management highlighted that 42 years back Sensex was 100 and it is up 500 times since then. In 1990, Sensex touched 1,000 for the first time and 30 years from then led to a 50-bagger return.

Q) Sensex@50K! A landmark day for Indian markets, but then we saw a fall just days ahead of the Budget. What are your views? What should investors do now if someone plans to put fresh money?

A) Time and again, the market reminds us that it is a voting machine in the short-run and a weighing machine in the long-run. The first half of last year was only about the virus, which sent Sensex quickly down to nearly 25000 in March and 9 months later on hopes of vaccine, earnings and economic revival have brought it to nearly 50,000.