Trade in stocks only as full-time investor: Jhunjhunwala

Mumbai, Nov 15 (IANS) Noted investor and markets guru Rakesh Jhunjhunwala says people should trade in stock markets only if they are full-time investors, or else leave their investments with mutual funds.

“Don’t go by tips like ‘my father told me’, ‘my husband’s friend has said’, ‘my brother’s wife has said’. Take professional help while investing. In fact, why don’t you invest in Nifty, that’s best — it’s got all the sectors,” Jhunjhunwala told an investors’ meet organised by BTVI.

“See, the romance of the Dalal Street analysts with the sectors is so shifting, it is difficult to fathom it.”

He said it may be good time to buy real estate stocks, but added that his prejudice has always remained towards equity, as opposed to other asset classes like gold.

“If you have risk appetite, my advice is, as far as possible, put it in equity. Equity has given far greater benefits than any other investment.”

As regards real estate, he said such investment was not only most ill-liquid, but price discovery is also difficult. This apart, the procedural matters and the logistics involved in entering realty and exiting it was also daunting.

“Real estate is not a bad investment. But it is a very inconvenient investment.”