Archive · 27 Jul 2026
Investors Focus Too Much on Returns, Says Expert
Bhautik Ambani, the CEO of AlphaGrep Investment Management, says that investors often make a big mistake.
They spend too much time trying to pick the best mutual funds and not enough time deciding how to mix different types of investments.
He believes that getting the right mix of stocks, bonds, and other assets is more important than choosing the best fund.
Ambani also says that managing risk and avoiding big losses is more important than trying to get the highest returns.
He suggests that investors should adjust their investments based on market conditions and use tools like SIPs wisely.
Technology and AI are also changing how people invest, making it easier to manage investments better.
Investors focus too much on picking the right mutual fund and not enough on asset allocation.
Asset allocation and risk management are more important than fund selection for long-term returns.
Dynamic adjustment of investments based on market conditions is crucial.
Reducing drawdowns and portfolio volatility is more important than chasing the highest returns.
SIPs remain a powerful savings tool but should be aligned with the investor's risk profile.
- Who
- Bhautik Ambani, CEO of AlphaGrep Investment Management
- What
- Investors should focus more on asset allocation and risk management rather than just returns.
- When
- The discussion is based on historical market data and current investment practices.
- Where
- The conversation took place on The Rediff Podcast.
- Why
- To highlight the importance of managing drawdowns and portfolio volatility for long-term wealth creation.
Traditional Investing Approach
Ambani's Risk-Focused Approach
Investment Focus
Traditional Investing Approach
Focus on maximizing returns and picking the best mutual funds.
Ambani's Risk-Focused Approach
Focus on asset allocation, risk management, and minimizing drawdowns.
Portfolio Management
Traditional Investing Approach
Maintain fixed asset allocations regardless of market conditions.
Ambani's Risk-Focused Approach
Dynamically adjust investments based on data and market conditions.
Investment Strategy
Traditional Investing Approach
Chase the highest possible returns.
Ambani's Risk-Focused Approach
Prioritize reducing portfolio volatility and drawdowns.
- Expert
- Bhautik Ambani, CEO, AlphaGrep Investment Management
- Key Message
- Asset allocation and risk management are more important than fund selection.
- Market Volatility
- Nifty has delivered annualized returns of 11-11.5% with 20% annual volatility.
- Drawdowns
- Maximum drawdowns can approach 60% during crises.
- Investment Tools
- SIPs remain a powerful savings tool but should be aligned with risk profile.
- Technology Impact
- Quantitative models, machine learning, and alternative data are reshaping investing.