What sets the rich apart is the ability to manage their own money. And to manage it well, investors need to get their goals and asset allocation right, according to Axis Bank’s Satheesh Krishnamurthy.
The science behind the pursuit of becoming rich begins with “getting your goal settings right”, Krishnamurthy, executive vice president and head-private, premium banking and third-party products at Axis Bank Ltd., told BQ Prime’s Niraj Shah in the special series ‘Where Do Millionaires Invest?’.
“Am I being too greedy? Am I being too conservative? Am I being overly aggressive or am I being too conservative? These are very important questions that need to be dwelled upon—especially with the richest—because bear in mind, I think it was Warren Buffett who said that you don’t have to become rich twice.”
Once one becomes rich, it’s “very important to consolidate your position”, he said.
“I think the secret sauce… is to get your asset allocation right. Very, very important because the amount of capital that you deploy to the six, hitting winners becomes very important. If you end up allotting very little to your multi-bagging ideas, chances are that you will get sub-optimal returns. So, it’s very important, whatever is the goal that you have in mind as multimillionaires or somebody who wants to be in that position.”