DIY investing starts with time, skill and interest, says Rajeev Thakkar

Success in rising markets is not enough; one needs to survive downmarkets to be equipped for DIY investing

- 

Do-it-yourself investing is often seen as empowering and exciting. With easy access to informa-

tion and online portals, building your own portfolio can look deceptively simple. But should you take the plunge? Rajeev Thakkar, chief investment officer-equity and director, PPFAS Asset Management Pvt. Ltd, urges caution against the temptation.

“If you get into karaoke singing or art, the downside is not much. But if you do surgery on your own, the consequences could be severe. Investing looks simple on the surface, but it requires a combination of skills, interest, and time,” he said at the Mint Money Festival while addressing the investors on DIY investing.

Thakkar recommended starting small. “Try DIY with 10-15% of your portfolio and track the results. Many investors think they are doing well until they calculate their actual returns, which sometimes don’t even beat fixed deposits,” he added.

He also stressed the need to test DIY strategies across market cycles:

“DIY does very well in a rising market so if your experience is the last five years then it’s not really a good representation. Typically you need to thrive in an upmarket and survive a downmarket only then you are equipped to DIY.”