"Investing is not what you know but how you behave; it is all about having a view of the future," say Industry experts


ANI New Delhi [India]
CFA Society India, in collaboration with CFA Institute, the global association of investment professionals, hosted its 9th India Investment Conference in Mumbai with the theme being Investing Insights for Uncertain Times.
The conference brought together leading local and global investment management practitioners, experts, and economists to discuss the latest trends in the global investment management industry.
This year's conference has sessions on geopolitical analysis, behavioral biases and pitfalls, decision making under uncertainty, and more, with practical advice.
"Our constant endeavor is to raise the bar each year and create a robust network of investment management professionals. The India Investment Conference is recognized as the longest running conference among investment industry professionals. We will strive to better serve CFA® charterholders, our members, and our clients and contribute to investor education," said Navneet Munot, CFA, Chairman, CFA Society India and CIO, SBI Funds Management Pvt. Ltd.
Speaking on 'Behavioural Biases and Pitfalls: Stories on How Investors Go Astray and How to Overcome Them', Morgan Housel, Partner, Collaborative Fund said, "People don't think about risk in an analytical way; they think about risk based on their historical experiences with regards to inflation, stock market performance, etc. People don't get what they want or what they expect from financial markets, they get what they deserve. No investment recommendation is worth it if a client can't stick with it. The goal of investing is not to minimise boredom, it is to maximise returns."
On 'Incorporating Geopolitical Analysis into your Investment Process', Matt Gertken, Vice President, Geopolitical Strategy, BCA Research Inc said, "Consumer driven economies can benefit from change in geopolitical constraints by being energy self-sufficient. Investors should focus on constraints over preferences. Preferences are optional and subject to constraints, but constraints are neither optional nor subject to preferences." On policy scenario he added, "Policy makers are price takers. Inflation would drive Fed to hike rates more than two times."
Speaking in his session on 'The Wisdom of Finance', Mihir Desai, Mizuho Financial Group Professor of Finance, Harvard Business School; Professor of Law, Harvard Law School said, "The gulf between finance and the humanities is a real loss. Finance can use the humanisation provided by humanities. Investors are fearful of uncertainties around capitalism. However, they forget how capitalism has benefitted economies around the world. Let's improve practice of finance by reconnecting practitioners with elements of humanity." Explaining what's common between mergers and marriages, he further added, "Integrity and independence of institutions are paramount. Real value comes from symmetric mergers which are complicated as compared to asymmetric mergers which are easy but don't create much value."
In his session on 'Decision Making under Uncertainty - Less Is More', Gerd Gigerenzer, Director, Harding Center for Risk Literacy, Max Planck Institute for Human Development said, "There are different ways to deal with risk and uncertainty. Less is more in uncertainty - use heuristics! Estimate, don't calculate. The best decision under risk may not be the best decision under uncertainty. Use practical ways of dealing with uncertainty and learning from past experiences."
"India is among the few countries where state dominates the bank. One must be careful when they say they need to develop a country, because beyond a point, financial sector development will not be able to help growth as it may pull it down," added Ratna Sahay, Deputy Director, Monetary and Capital Markets Department, International Monetary Fund in her session on 'India's Economic Ambitions: Can the Financial Sector Deliver?'.
The day-long 9th India Investment Conference was attended by close to 650 investment management professionals, providing a unique opportunity for delegates to improve their understanding of key issues that will drive investment decision making. It had a stellar line-up of global and Indian speakers including Sajjid Z. Chinoy, Chief India Economist, J.P. Morgan, Ridham Desai, Managing Director, Morgan Stanley, Milind Sarwate, Founder & CEO, Increate Value Advisors LLP, and Sunil Singhania, CFA, Founder, Abakkus Asset Management, LLP among others.

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First Published: Jan 15 2019 | 12:37 PM IST

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