'Staying disciplined is what will make returns from equities'

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Dhiraj Agarwal, CEO - Portfolio Management, Motilal Oswal Securities and Lokesh Nathany, national head of wealth management, Almonds Global Securities, responded to Akash Joshi and Abhay Rao about the current market impact on Portfolio Management Services and their strategies

Since the beginning of the year, the markets have not been performing well. Has this had any impact on the sentiments of your clients in any way?

It is but natural for the investors' sentiment to be adversely impacted after such a hard fall in equity markets. However, many of our investors are believers in long-term investing and understand that short-term pain like this is sometimes unavoidable.

Has there been a slowdown in investors wanting to take on PMS services?

In general there has been a slowdown of inflows in equity products - mutual funds and PMS.

In times like this, what are some of the mistakes that clients do while dealing with PMS service providers? What is your advice to them?

Most of the errors investors commit in times like this is sell out in panic, whether is it direct stock holdings, mutual funds or a product under PMS. My advice to all equity investors is to understand the risk profile, investment objectives, and horizons and subscribe to products (or buy stocks), which meet these needs. By doing that, one can manage the emotional swings of investing more effectively, rather than getting carried away when the market is in a runaway bull phase or selling/exiting in panic, when the market is under stress. Managing emotions at both the extremes is critical to successful investing.

What have been the changes in the portfolios that you have managed in the past six months?