With current market volatility, this is a great time to invest money, if one makes an informed decision and is willing to invest for a long-term.
With current market volatility, this is a great time to invest money, if one makes an informed decision and is willing to invest for a long-term, Priti Rathi Gupta, managing director, Anand Rathi Group and founder of women’s financial planning platform LXME, told Financial Express Online. Among other things, she also talks about the risks associated with short-term investments, why it is important for women to take charge of their own wealth and the company’s plans to bring the idea of sisterhood or women community even closer to reality. Edited excerpts of Priti Rathi Gupta’s conversation with Prachi Gupta:
You started working at the age of 16 years. How has the journey been so far? What kind of financial advice can you give to women from your experience?
I was lucky to have a father who felt it was important for me to learn about investing and managing one’s portfolio. Interning with my father and uncle, helped me get introduced to the financial world. After marriage my journey in the financial world has continued. While investing, one needs to focused towards wealth creation to meet long term and short-term financial goals. It is also important to understand that women go through different careers paths, compensations and thus investment strategies for women should take such scenarios into consideration.
Why would people choose to invest with your firm LXME over banks or other instruments? Markets are crashing due to coronavirus. How do you assure your investors of good returns or maybe even returns higher than other instruments?
At LXME, our aim is to become enablers and change-makers, aiding more women to actively participate and invest in equities, mutual funds and the broader capital markets. As a thumb-rule, women should consider investments which takes care of rising prices/inflation. Our investment strategies are designed to take into considerations the inflation, the time period that a woman would want to invest and mitigate risks.
Taking advantage of years of research within the group in the past 25 years, we are able to offer products offer about 8-9% (indicative) rate of return for the short term. While there are always risks associated with short-term investments, but with the proper diversification between debt and equity, timely monitoring your portfolio it is possible to achieve this.
As explained above, wealth creation is a combination of both short and long term goals. If you wish to invest for a long term basis, the current times offer a very good entry opportunity and one is sure to make some good returns over a period of time.
How much is Anand Rathi group a part of this initiative?
LXME is bootstrapped under Anand Rathi Group and operates as a wholly owned subsidiary of the Anand Rathi Group.
We as feminists talk about women liberation and breaking the shackles of patriarchy. How feasible do you think that idea is in a world which is still largely patriarchal. Do you feel uneasy that a project so close to your heart still carries the Anand Rathi tag?
It is a fact that, the years of conversations around women empowerment have enabled a lot of changes in the lives of women, but this is just a beginning. It is important that women are not only able to financially support themselves but also play an equal role in deciding how their money is utilised. That’s when we can say that they are truly empowered.
Every new venture needs support and guidance to begin with. And operating in the financial services space, “Trust” is a very important factor. LXME is proud to have the Anand Rathi legacy behind us as it instills a lot of confidence in customers and also provides us the necessary support that is required as we undertake this journey. Our parent company has given us the confidence and has backed to work in this space given that our promoter board as well as company boards have many women in the leadership roles. So no, its no unease but a matter of great pride.
While remaining a part of the group, LXME shall remain solely focused on women and will strive to support the needs of women in every way towards becoming truly financially independent.
What kind of growth have you seen since inception?
With four months of operation we have 1,000 clients onboard. That gives us the confidence that we are able to connect and help women understand their money matters.We are seeing lot of interest and have received a lot of positive feedback from women.
What are your goals for the next five years?
Over the next 5 years we hope to have 1,00,000 women investors who regularly invest with us regularly. However, the larger goal is to create an active community of like-minded women, who are willing to help others while they learn & earn in their respective journey.
We have just scratched the surface, in what we are hoping to achieve and have long & challenging journey ahead of us. The interest that we have seen from women in a short period of time, assures that we are moving in the right direction and the future is very bright.
Any other services you plan to start?
As part of our strategy, the larger goal is to create an active community of like-minded women. We plan to have both an online and offline outreach mechanism to connect with women. our pipeline of products is based on our constant learnings from our interactions with all our customers.
At the time of a national health crisis, all are efforts are currently directed towards connecting with women through the online space for now. With the growing usage of online platforms, the ease of connectivity and interest amongst people to take up new courses etc. offers us a perfect opportunity and we are putting our best efforts towards to maximize the same.
Owing to the nature of our business and sensitives involved, having a personal connection with people is a very important role. We are cognizant of the same and basis how the situation evolves at national and state levels, we will take the necessary decisions for our offline strategy.
- First published on www.financialexpress.com on 28 April 2020. This interview has been updated with additional inputs.