Rohit Mantri, a first-time equity investor who opened a dematerialisation account with a leading discount broker in India, started pouring money into equities in 2020 when the pandemic hit us all in the most unexpected manner. Within a matter of months, owing to the sharp rebound in the equity prices, the portfolio size of Rohit swelled into lakhs. The confidence was sky-high and stock prices jumped rapidly, allowing Rohit to turn all his dreams into reality. It was irresistible for Rohit to not invest more into equities. The good momentum continued in 2021 as well, leading to ten times gains in just 18 months in his portfolio.
Such stupendous gains in such a short time managed to make Rohit a rich person by his own admission. However, come 2022 and Rohit is perplexed and unclear as to what needs to be done to keep the portfolio performance intact. Today, he reads more articles related to the stock market and has also got several books on this subject to understand how stock prices function and what leads to wealth creation in the long run. He has also attended several seminars, webinars and stock market training sessions in 2022, all with an aim to sharpen his market timing skills.
While the attempt is to improve stock market skills, the portfolio continues to underperform in 2022. With patience is running out, Rohit is now contemplating to hire an investment advisor. The reason to look at an investment advisor is to get a fresh perspective on the markets and to protect the capitals gains accumulated over the past 18 odd months. After all it is painful to watch a portfolio bleed, especially when its size has expanded into several lakhs. It is not very difficult to trace investors with similar experiences in the world of the equity market.
This story is from the July 18, 2022 edition of Dalal Street Investment Journal.
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This story is from the July 18, 2022 edition of Dalal Street Investment Journal.
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