Remy Gupta Moniz is only nine months old but he is already present in the investment world. It has had a Systematic Investment Plan (SIP) in place since September. And it was possible thanks to his mother Radhika Gupta, 39, managing director and managing director of Edelweiss Asset Management Company (AMC).
Remy Gupta Moniz is only nine months old but he is already present in the investment world. It has had a Systematic Investment Plan (SIP) in place since September. And it was possible thanks to his mother Radhika Gupta, 39, managing director and managing director of Edelweiss Asset Management Company (AMC).
“We (my husband Nalin Moniz and I) started a SIP for Remy in 2022 when he was just three months old. As his guardians, we can act on his behalf and manage the SIP until he turns 18. Remy has invested in a $250 large and mid-cap passive fund, giving him broad exposure to the growth of the Indian economy. This investment can help us have a more serious conversation with him about investments and finances when he grows up,” Gupta says during an interaction with Mint for the Guru Portfolio series. In this series, leaders in the financial services industry share how they manage their finances and investments.
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“We (my husband Nalin Moniz and I) started a SIP for Remy in 2022 when he was just three months old. As his guardians, we can act on his behalf and manage the SIP until he turns 18. Remy has invested in a $250 large and mid cap passive fund, giving him broad exposure to the growth of the Indian economy. This investment can help us have a more serious conversation with him about investments and finances when he grows up,” Gupta says during an interaction with Mint for the Guru Portfolio series. In this series, leaders in the financial services industry share how they manage their finances and investments.
Gupta says she tried to strike a work-life balance after giving birth to her baby in June last year. “I’ve bounced back from pregnancy and giving birth, and I think that in itself is a major lifestyle change. Now I’m trying to find a way to balance all the work commitments I have. with Amfi (Association of Mutual Funds in India), work, work related travel, our new fund offerings etc and the baby I don’t think there has been a change in lifestyle more important than that,” she says. Gupta, who joined Edelweiss AMC as CEO in 2017, serves as vice chair of Amfi’s board of directors.
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Gupta, the author of Limitless, says 2022 has kept her very busy. In August, shortly after Remy was born, the family moved into their new home in Parel, an upscale locality in Mumbai, after completing the interior decoration. Last year, it had shifted some of its investments from the hedge fund (intended for the provident fund) to a short-term cash allocation to fund interior design work. “The interior work represented a significant expense. It was a big goal, which was fulfilled last year. Now there are no major expenses as such coming up,” Gupta said.
Gupta says she has more or less maintained her asset allocation since last year. Around 60% of its allocation is made up of balanced funds (70/30 equity/debt split), 15% of mid and small cap funds, 15% of international funds (combination of developed and emerging markets) and 10% of alternatives. Its alternative investment is through an alternative investment fund managed by Edelweiss AMC and small stakes in a few startups.
Its overall portfolio generated steady returns of 0.4% over a one-year period from April 2022 to March this year, which can be attributed to the tepidness of equity markets, both domestically and internationally during this period.
Internationally, Gupta is exposed to both developed markets (US funds) and emerging markets. Gupta prefers a broad, diversified exposure to international markets and avoids global investment themes.
Gupta had planned to add gold to her portfolio given the sharp rise in inflation, but she hasn’t managed to do so yet. She says she could still add it to her portfolio through a multi-asset fund.
Although she made no major changes to her investment portfolio, she says she stuck to her existing SIPs, even after the mandatory skin-in-the-game rule introduced by the market regulator Securities and Exchange Board of India. The rule meant that 20% of employees’ wages were paid out as investments in AMC’s own mutual funds with a three-year lock-in period.
Gupta says the rule actually helped her increase her investments as she continued with her existing SIPs.
As her income continues to grow, she says she plans to supplement her SIPs. “I have an after-tax savings goal. This year some of the money was used to prepay part of the home loan as interest rates rose,” she adds.
Gupta says 75% of his own portfolio is in Edelweiss AMC plans. She says she invests in a few programs from other AMCs, but her preference is her own AMC. Indeed, she is very comfortable and aware of investment processes, governance, etc. of its own AMC.
She looks at a few things when choosing an external AMC for her own investments. “I see if I can trust the AMC, my comfort with the AMC, and also the size. For example, I would not prefer a very large program in mid and small caps,” she says.
Gupta will also seek to replenish his provident fund (used for interior design work) through his annual bonus. It aims to keep the contingency fund as a provision for one year of expenses.
Gupta and her husband visited Morocco last year. It was his first international trip after the pandemic ended. She had been to Goa recently. She now plans to go to Singapore and take a short domestic trip with her family.
Gupta has taken out group life insurance with her employer. She took no extra blankets.
“My husband and I discussed whether we should opt for health coverage before we turn 40, when we are healthy,” she adds, but did not elaborate on plans. .
“For new investors, market volatility is a good time to rethink your portfolios. It is not because taxation is less efficient that one should not go into debt. Taxation is not the only thing. People compare term deposits to mutual funds, but a lot of things are different; the liquidity conditions are different, for example. Don’t change just because of a tax change. I think hybrid funds are a great way to do your asset allocation. It was a great way to allocate assets within the old tax framework. In the new framework, they are even a better option. It is also something that I am. Core asset allocation can be done through hybrid funds, perhaps supplemented by mid- and small-cap funds, depending on risk appetite and return expectations,” says Gupta.
“Investors should also remember that too much redistribution of investments also has a tax impact. So it’s expensive in that sense. It is advisable to give a fund at least some time before deciding whether or not it meets your expectations,” she adds.