29 Years
Home > Business & Investment > THE MICRO FACTORS STRATEGIST


Monday, April 07, 2014

A strategist who looks at the micro factors within the investment segment along with the overall economic scenario. He believes that to be good investor one needs to look at the overall picture including fundamental and technical analysis. That’s Pramit Brahmbhatt, CEO, Veracity Group, who shares his views with Dominic Rebello on his approach to succeeding as an investor

A little background about your company and yourself?
I am a management graduate holding a BBA and MBA (Finance). During my MBA studies, I realised that to understand the core of financeit is important to have accounting knowledge. So I decided to qualify  in accountancy. I did my ACCA from London and that helped me get global exposure. After seven years of experience in the UK, I moved back to India in 2009 and started a new initiative in the currency market. I have now expanded my group’s exposure into equity and commodities. My company Veracity is a member of all  major exchanges like NSE, BSE, MCX and NCDEX. The vision is to provide diversified investment opportunities under one roof.

How do you pick your investments; Technical or Fundamental analysis?
To select any investment products one needs to look at the overall scenario. It is very difficult to pick it on the basis of either of the analysis. For investment we have to analyse various areas to mitigate the risk. Also it is important to be flexible and not be overloaded with various analysis. So to summarise, one needs to use some basic technical analysis and at the same time look at the fundamental scenario and macroeconomic scenario.

How would you describe your methodology?
It is important to look at the micro factors within the investment segment and it is also important to look at the overall economic scenario. Once I am certain about the particular product, I try to analyse the larger economic scenario. It is important as sometimes the product is good, but the overall situation is not perfect for the investment. In such a scenario, the return on investment can have limitations. So in order to invest into the product, it has to be good first and then the overall market should offer a supportive situation.

What differentiates you from other traders/Investors?
It is very important to have a clear vision while investing. In the era of globalisation, financial markets are not only affected by local factors but international as well. My understanding of the global markets gives me  more comfort. During the selection of  any investment products, I use basic analytical tools rather than trying to use all the available tools. It helps me to keep my focus on the entry and exit strategy. Also at the same time I prepare for any unexpected scenario.

What gives you that edge?
I have witnessed financial markets in last 12 years. I have also witnessed the growth of the market from the recession of early 2000 to the pick up of 2006-7. In the same decade we have seen the historical depression of the global financial market. Such events give a firstt hand experience. Being in the centre of the global financial market, I managed to understand the mind set of global investors. I think this is the biggest learning one has to use in the real world.

Is there any applicable lesson to trading/ investing?
Financial market are very dynamic and evolving and so we have to keep ourselves updated with the new changes. So learning and implementing the same is very important. The other most important lesson is risk management by understanding our own investment capacity and loss bearing capacity.

How much of what you do is gut feel?
Investing on the basis of gut feel can be dangerous. Sometimes you have a feel about the particular product and it may even go in your expected direction. But it is always important to check the same with the necessary analysis to reduce the risk.

Do you try to anticipate or follow market trends? What are the basis?
Trend is your friend. But it is important to follow the trend with logical reason and exit at the right time. Majority of the time while analysing the market I can understand and anticipate where that the particular trend is going, but cross checks are always advisable.

When you put money on a trade and it goes against you, how do you decide when you're wrong?
There can be two scenarios in such an event. There could be a speculative move which drives market against you. In such a case the move would soon exhaust  and correction happens. So if I believe that the there is no logical reason for the move than I try to add move investments at higher levels. These additions give me good comfort when the markets normalise. In second scenario, when market moves against me due to some fundamental changes than the best thing is to exit the particular investment.

Where do you see the Indian markets five years down the road? Any number for the Sensex in 2015?
The 2015 figure will be more or less dependent on upcoming government and its policy. Indian investors are presently optimistic. But India is at the cross road where if we select the right policies than we can go along way in economic growth. The edge India has at this point of time is that we have weaker competition from other emerging markets such as China, Brazil and Russia. So we should try to take maximum advantage of it. With right policies by the new government the Indian markets could make new highs.

What makes a trader/investor successful?
To be a good trader, one needs to follow the daily trend and keep focus on a tight entry exit strategy.  Also one need to have clear long term focus and shouldn’t look at smaller short term movements.

Any final words?
Currently the Indian market has rallied on the back of aggressive FII funding which is a result of political and economic issues in major emerging markets like Russia, China and Brazil. I expect some correction in equity markets before the election results as there can be uncertain political conditions in India after the results. The path of Indian equity markets will depend on the outcome of the election results and policy decisions taken by new government. Globally, major economies like US and UK are improving since last 6 months. We will see US dominate global growth till 2017.

No Comments Posted
City news
First-time Shiv Sena corporator and former LIC of
As the code of conduct will come into ...
The Bombay High Court on Tuesday sentenced ...
I teach biology in college. My students often ask
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Select Sun sign:
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)Routine work continues smoothly. You should be wary of those offering instant gains. Heavy expenses are indicated at home. A romantic mood prevails. Reunions and patch-ups in broken associations are likely. Student will do well in studies and sports.
Tarot for Love
Select Sun sign:
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)What the cards say: Introspection Path: Unravel situations through understanding. Don’t jump to conclusion Ally: Pisces shows you gentleness. Stay away from Gemini and mental confusion Card of the week: Tarot key no XIV Temperance invites you seek and find the right combination and temperance. Right balance brings harmony and ease
- Advertising -
Turning thirty is no big deal, but if your twenti
Noopur Raghunath is the founder of Certus Technol
We wear dresses, skirts and trousers to flatter o
Read More