National Stock Exchange (NSE) Managing Director and CEO Ashish Kumar Chauhan has urged investors to adopt a long-term investment approach. He cautioned against chasing quick profits, following unsolicited stock tips and trading derivatives without adequate knowledge.
Speaking to NDTV Profit, Chauhan recommended staying invested for three to five years or even a decade. He said frequent buying and selling could undermine disciplined investment decisions.
“Investment means being patient and investing for the long run and not buying in the morning and selling in the afternoon,” he said.
He also warned investors against acting on television discussions, market rumours and speculative news. Instead, he stressed the importance of understanding investments before committing money.
Chauhan cautions against uninformed F&O trading
Chauhan highlighted the risks associated with futures and options (F&O) trading. He said investors should enter the derivatives segment only after understanding its functioning and associated risks.
Furthermore, he cautioned that uninformed participation could expose investors to substantial losses.
The NSE chief also advised against borrowing money to invest in equities. He urged investors to avoid taking financial risks beyond their repayment capacity.
Market fluctuations remain inevitable, he said. Therefore, investors should avoid allowing short-term volatility or speculative impulses to dictate their strategies.
NSE chief recommends professional investment guidance
Chauhan suggested mutual funds and professional investment services for people who lack the time or expertise to track markets.
These options include fund managers, financial advisers and portfolio managers. Such professionals can help investors make informed decisions based on their financial circumstances.
He compared investment decisions with healthcare choices. People generally consult doctors rather than attempting treatments without medical expertise.
Similarly, investors should seek professional guidance instead of making uninformed market decisions, he said.
Chauhan added that disciplined, long-term investing could help investors pursue better returns than several alternative investment avenues. However, he stressed the need to remain aware of market risks.
Chauhan compares AI investment cycle with dot-com boom
The discussion also covered artificial intelligence (AI) and its potential implications for Indian markets.
Chauhan discussed India’s emergence as an investment destination amid technology-led changes. He also compared the current AI-driven investment cycle with the internet boom of the late 1990s.
According to him, the present cycle shares similarities with the dot-com boom of 1998-2000.
His comments highlighted the importance of investor discipline amid changing market trends. They also drew attention to the risks of speculative behaviour during periods of rapid technological growth.
