Focus On Consistent Returns Over Quick Alpha, Says AlfAccurate's Rajesh Kothari

Investing is not only about generating quick wealth but more importantly about generating consistent returns, according to Rajesh Kothari.

The need for risk management is critical, and it is not only about alpha, but also about managing downfall during a market crash and generating consistent returns, said Kothari, founder and managing director of AlfAccurate Advisors Pvt., on NDTV Profit's 'Portfolio Manager' show.

"Protect capital and create wealth is our only philosophy," Kothari said.

Apart from other stock selection processes, it is important to monitor the business cycles, Kothari said. "It is very important to monitor the cycles of the companies which you are investing into and when to get out of it."

Market cycles are happening faster in the current environment, and investors sell stocks when assumptions about a company are going to change, valuations are expensive, or better risk-reward opportunities emerge, said Kothari, whose firm manages about Rs 1,937 crore in assets.

Don't try to time the expansiveness of mid and small-cap stocks, he said. "People have been saying that mid and small caps are expensive, but it continued to deliver," Kothari said.

Capital goods, consumer sector, and real estate space are the areas that Kothari is bullish on.

Watch the full interview below

The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.