Me and My Money: Invest well by managing your risks well

SINGAPORE – Save where you can, spend where you must – wise words that finance executive Sanjay Guglani picked up as a child from his father and that have stuck with him since.

Mr Guglani was not given a set amount of pocket money during those early years in India but was allowed to take what he needed from a purse in the house. This taught him the value of being responsible with money, which he has carried into his career.

He is chief investment officer of fund management company Silverdale Fund, which he set up in London and Geneva in the early 2000s.

Silverdale is a Monetary Authority of Singapore-licensed fixed-income fund house managing more than $1 billion in assets across open-ended, closed-ended and bespoke funds.

Mr Guglani, who is in his 50s, believes the first step towards investing is educating oneself by reading about corporate success stories. His interest in investing began as a way to fill the time between completing his chartered accountancy examination and waiting for the results.

“I love reading non-fiction, and am passionate about reading corporate success stories. Hence, I dug deeper and deeper into the rabbit hole of corporate fundamental analysis. The success achieved in it further fuelled my passion for investing,” he said.

Mr Guglani and his wife live in a four-bedroom apartment near the Singapore Botanic Gardens with their elder daughter. Their second daughter is studying in the US.

He graduated with a Sloan Fellow in Management from London Business School as a Chevening scholar.

The Chevening Scholarship enables foreign students to study at universities in Britain.

Q: What is in your personal portfolio?

Over the past 50 to 100 years, the S&P 500 has delivered an average annual return of approximately 10 per cent. But I prefer the certainty and steady compounding offered by Silverdale Funds, which typically generate over 8 per cent per annum.

Over 85 per cent of my liquid portfolio is allocated to Silverdale Funds – all Silverdale open-ended funds, few Silverdale fixed-tenure funds and one bespoke fund for my family.

My equity exposure is primarily through exchange-traded funds, predominantly focused on medical devices, big tech, pharmaceuticals and India. These equity investments are conservatively leveraged, providing overall returns that are competitive with more exotic equity funds.

Beyond these, my family owns residential houses and offices. I have explored other investment options, including cryptocurrencies, trade finance and art, but I’ve chosen to stay away from them due to their inherent risks and lack of fundamental strength. I follow the maxim: when in doubt, stay out.

Q: What was your biggest investing mistake? And your best investment?

Having weathered the Indian stock market crash of 1992 and the global financial crisis of 2008, we successfully navigated the challenges of Covid-19. We were among the few fund managers who used leverage and were able to avoid losses.

But we missed a significant opportunity to generate substantial gains by waiting too long to increase our leverage. Personally, it was a double blow, as I had already reduced my equity exposure at a loss in April to May 2020 and failed to capitalise on the rebound.

One of my best investments was in Hero Honda (now Hero MotoCorp) shares, which were among my earliest equity investments. They yielded a remarkable 10 times return and solidified my career in capital markets.

Q: Describe your lifestyle.

I drive a Silver Toyota Camry Hybrid. I enjoy reading books on business and spirituality, and read 20 to 25 books a year.

I come from a traditional business family. My grandfather migrated from Western Punjab (Pakistan) to India in 1947. My father was the first in our extended family to pursue higher education. Since his teens, he worked tirelessly to save money for his studies.

I inherited my love of reading from my father, who still enjoys reading the daily newspaper for an hour every morning. At the age of 89, he continues to love reading and has picked up writing as his hobby. He recently completed his autobiography. Despite our modest financial background, my father prioritised education above everything else.

Growing up, we did not have any concept of pocket money. There was an old green lady’s purse kept in a wardrobe; whenever any of us – my two elder sisters or I – needed money, we took what was required. This instilled a sense of trust and responsibility that continues to be a core value in our family.

Even my daughters don’t get pocket money; they are free to take as much as they need. This has instilled in them financial discipline and responsibility.

My father taught us: “Save where you can, spend where you must.” I have added to it: “There comes a time in life when you spend time to earn money, and then comes a time when you should spend money to save time; know the difference.”

His top finance tips:

1. Stay grounded and adhere to fundamentals.

2. The best time to start investing was yesterday, the next best is today.

3. Don’t be afraid to take risks.