'NBFCs would be beneficiaries of inflation peaking out'

Amit Nigam started his investment management career in 2001, working as an analyst. He joined Invesco in 2018 and currently co-manages many of their mutual funds, including Invesco India ELSS Tax Saver Fund, which is on our recommendation list. Recently, we spoke to him to understand how he drove the performance of this fund in 2023 and his rationale for some of the portfolio shifts. Here is the edited transcript of the interview. You have worked across multiple fund houses and been associated with Invesco for 5-6 years. Please tell us about your key learnings. Reflecting on my career, there have been several significant learnings. The process of investing requires not only "what to do" but also "what not to do". As for the latter, I have realised that there are three principal mistakes which investors should avoid: Choosing the wrong business - from an investor's perspective. Choosing the right business but making a poor choice of the people running the business. They may lack the focus and ambition to drive it aggressively, or they are simply not "hungry" for growth. Investing in businesses where the management or promoters are not minority-shareholder friendly. There is one more mistake that I would like to touch upon - paying excessive valuations for a good business - as the same may lead to short-term disappointment or very delayed gratification. This mistake can, however, be corrected by extending the holding period. Thus, it can be summarised that one needs to choose companies wisely and then hold on to them for a long time (provided none of the above highlighted three principal mista

This article was originally published on February 15, 2024.