We spoke with Rajesh Sharma, Director & Promoter, Capri Global Capital, to seek his view on investing. He has over 19 years of experience in capital market and financial advisory services.
Q: What is your philosophy towards investment?
A: The investment philosophy revolves around an in depth understanding of the investment avenues with a fine balance of the underlying risk vis-à-vis the returns from the investment.
The approach is conservative but at the same time the aim is to evaluate all opportunities that fit into the broad investment framework. Since we are a team of professionals who are abreast with developments globally, one makes a concerted effort to continually incorporate learnings from interactions and experiences into the investment process.
Q: How disciplined are you when it comes to investments?
A: The aim is to be extremely disciplined not just in adhering in principle but in spirit to the investment guidelines. The approach is process oriented, where one scientifically measures underlying risks in each of the investments that is made with necessary safeguards or mitigants as may be required.
At the organisation’s level, we have significant investments in the real estate space, but given the robust credit risk management we adopt, we have an enviable portfolio with no non-performing assets.
We have identified within the real estate space, asset classes such as residential, which we believe have lowered risk and in markets which are not speculative. Our cover expectations for transactions that we do, ensure that even in the event of downturn in the markets, there is adequate capital protection.
Q: What kind of an investor would you describe yourself as: conservative, balanced or aggressive?
A: The approach adopted is balanced as the idea is to pursue opportunities which match risk appetite and philosophy while meeting return expectations.
A professional approach to investment management, the depth in relationships with market participants and understanding of the markets and likely direction, help achieve desired results consistently.
Q: Could you share some of your learnings in investing?
A: An in-depth understanding / expertise of areas where investments are made is a key imperative.
The need to move away from qualitative approach to a model where risks are adequately quantified and assessed is critical to any successful investment. Lastly there is a need to continuously engage with market participants, understand needs and to develop products / structures around such needs.
Q: What is your advice to the general public as far as investing is concerned?
A: Real estate as an investment avenue has always been one of the safest and will continue to be so. The fallacy lies in expecting real estate to offer returns comparable to riskier asset classes while retaining the inherent security that a real estate investment offers.
For retail investors, buying in residential developments, in established markets, by reputed developers, in non – futuristic areas with an investment time horizon of at least five years continues to remain an attractive bet.
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