Dinshaw Irani, CEO and managing director of Helios India, cautioned investors against applying the 'buy right, sit tight' strategy to individual stocks, highlighting the need to reassess investment decisions as business fundamentals and market conditions change.
Speaking at NDTV Profit Ignite 2026 on Wednesday, Irani said the approach could work for mutual funds but not necessarily for individual stocks. "Buy right sit tight can work in mutual funds not in individual stocks. Things are very dynamic," Irani said during a discussion on investing and mutual funds.
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Mutual funds can spread investments across multiple securities, reducing dependence on any single company's performance. Individual stocks, however, carry company-specific risks, including deteriorating financial performance, governance concerns and changing competitive dynamics.
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Irani Explains His Elimination-Based Investing Approach
Irani also outlined his approach to stock selection, describing it as a process of eliminating unsuitable companies rather than simply identifying attractive opportunities. "We don't select stocks. We reject them," he said.
The approach emphasises screening out companies that fail to meet an investor's requirements before committing capital. For investors navigating volatile markets, this highlights the importance of evaluating business quality, financial strength and valuations instead of following market momentum alone.
Radhika Gupta Backs Long-Term SIP Discipline
Radhika Gupta, managing director and CEO of Edelweiss Mutual Fund, offered a reassuring perspective on systematic investment plans (SIPs), emphasising the value of staying invested over longer periods.
"I'm a less dramatic person," Gupta said, adding that the worst-case scenario for an SIP investor was not necessarily bad. She also stressed the merits of maintaining SIPs over a 10-year period.
SIPs allow investors to invest a fixed amount at regular intervals, helping them avoid the pressure of timing every market movement.
Gupta also highlighted changing dynamics in the asset management industry and called for a reassessment of the prevailing narrative around smallcap stocks.
Vikas Khemani Flags Market Froth Despite Consumption Strength
Vikas Khemani, founder and chief investment officer of Carnelian Asset Management and Advisors, said India's consumption story was not slowing down, although newer businesses were performing well.
"There is always froth in markets," Khemani observed.
His comments underline the distinction between underlying economic growth and stock market valuations. Strong consumption trends can create opportunities, but investors must still assess whether company valuations adequately reflect future earnings potential.
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