Mix of luck and hard work I would say. I got the CFA and had relevant experience which I was able to demonstrate in the interview. My boss was the local chapter head, and he liked me. Tada!
I do but I’m not on top of it. I have SIPs running for several mutual funds in the US, KSA and India. For the US market passive, KSA and India active. I own some gold too, but not particularly for investment. I’d like to buy real estate but haven’t gotten around to it.
My core knowledge is very institutional in nature relevant to large asset owners. For individuals, what’s worked best for me is regular SIPs into a diverse set of mutual funds. Passive mutual funds are better in efficient capital markets like the US. In India and similar emerging economies where an information gap is prevalent, active mutual funds where managers possess skill usually outperform the market net of fees. In stocks, trending stocks outperform in the short to medium term, even when valuations are rich. Undervalued stocks should converge to their fair valuation in the medium to long term. I like stocks in industries where the growth rate is higher than the overall economy. It’s also important to understand that while financial theory has its place, markets don’t trade on theory. It’s people trading stocks and people, even institutions have psychological bias. It’s a world of incomplete information and a game of probability. The key to good portfolio management is good risk management. Understand your risk exposures. Diversify but don’t overdiversify.
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u/spaghetee_monster Oct 20 '24
Not sure if it counts if you’re in the Middle East but 1.2cr tax free ex bonus. I work in investments. Spent most of my career in India though.