Why this Edelweiss honcho has plans to add gold to her portfolio Gupta is largely consistent with her equity holding, which she has been maintaining in the 65-70% range Abhinav Kaul abhinav.kaul@livemint.com t's been two years since the covid-19 pandemic stuck, resulting in lockdowns and sending the global markets into a tailspin. Mint in 2020 spoke to leaders in the financial services sector to understand the impact on their investment portfolios. Initsthird year, we again reached out to those industry leaders to see how things have panned out. RadhikaGupta, managing director (MD) and chiefexecutive officer (CEO) of Edelweiss Asset Management Ltd, says she might add gold and some unlisted equity in her personal investment portfolio. We look at the reasons behind the moves and explore how her life has changed postpandemic, as part of our annual series on the personal finance journey of financial services industry leaders. Steady equity Guptais largely consistent with her equity holding, which she has been maintaining inthe 65-70% range since 2020. In the last one year, her equity allocation of 70% (excluding employee stock ownership plan or Esops) has delivered a return of 18%, which is in line with Sensex's gains during the same period. While Gupta will not be shifting between the market segments in the equity allocation, there's a Key addition to the portfolio. "There will be no significant changes in the equity segment, but I will be adding some unlisted equity exposure via a new fund we will launch," she said. This addition will be inthe alternate category ofherportfolio. The head of Edelweiss MF, which | J PORTFOLIO A MINT SERIES has 78,000 crore as assets under management (AUM), already holds 10% under an equity alternative investment fund (AIF) under the alternate asset class, which is up 12% on a yearly basis. As per Gupta, one strategy that hasn't worked for her in the past one year is the international allocation. Sheis holding global stocks, especially in emerging markets, as part of the equity segment, which has trailed Indiareturns over the last year, but, "I continue to hold it as part ofthe asset allocation," she said. Debtrejig According to Gupta, her debt allocation hasreduced in the overall portfolio from 35% in 2020 and 30% in 2021 to 20% at present. The balance has been allocated to the alternate asset class. The debt portion, which is only in hybrid funds, of Gupta's portfolio has delivered a return of 5% on a yearly basis, as she doesn't look to shift between categories in the segment. "Tt doesn't make sense to hold debt outright when you have a home loan," she argues. Further, Gupta continues to keep her contingency money in arbitrage funds, which is sufficient for at least a year. Gold finds favour For the first time since the pandemic broke out, Gupta said she is considering adding the yellow metal to her portfolio. "Tam considering it given the rising inflation and a fund we have in the Pipeline," she argues. As of now, Gupta doesn't hold any gold or real estate in her portfolio. Notably, Indian gold funds with an average return of 17.55% on a threeyear basis have outperformed 15.21% 1 WHAT'S YOUR CURRENT ASSET MIX? Equity 70% Debt 20% v Gold Nil Real estate Primary home Alternative 10% asset class (equity AIF) This is excluding ESOPs Debt exposure is via hybrid funds O 0O wow HOW HAS YOUR 8 WHAT IS THE % ALLOCATION TO YOUR OWN SCHEMES? 70%. Has risen marginally. HAVE YOU INCREASED CASH ALLOCATION? Increased a little bit of short term cash allocation for home interiors. 10 PROVISION FOR 2 PORTFOLIO EMERGENCY PERFORMED IN ' THE LAST YEAR? v 1year A Equity BY " 4 AREYOUSHIFTING ONE STRATEGY B Debt 5% BETWEEN THAT DID NOT WERE YOU ABLE CATEGORIES IN WORK OVER THE 11 ToGOONA C Gold NA DEBT? PAST YEAR HOLIDAY IN THE D Realestate NA No. 1 only hold debt International PAST YEAR? F Altemative 12% YY viahybrid funds, because allocation, especially Short trips to asset class it doesn't make sense emerging markets, trailed Rishikesh, Udaipur. Travel when you have a home loan. The contingency money in arbitrage funds. 3 ARE THERE ANY India last year, but | of asset allocation. continue to hold it as part was restricted because of my pregnancy, will likely be so for a while. 12 ANY LOCKDOWN-INDU CED LIFESTYLE CHANGES? CHANGES IN YOUR EQUITY WILL YOU BE WILL YOU BE ALLOCATION? 5 INVESTING IN 7 INVESTING IN No significant changes, INTERNATIONAL GOLD? but will be adding some FUNDS? unlisted equity exposure via a new fund we will launch (in the alternative category). Already do, both developed and emerging markets, as a part of diversification. Don't yet, but considering it. Given rising inflation and a fund we have in the pipeline. More yoga and time on writing. Wrote a book during lockdown and want to continue writing. gainsdelivered by the large-cap equity Category. Interestingly, US inflation accelerated to 8.5% in March, hitting a fourdecade high. Inflation isgenerally supportive of gold prices. Post-pandemic lifestyle Covid-induced lockdowns and restrictions have redefined daily lifestyle-related habits in a significant manner in terms of diet, physical activity, and relaxation. As for Gupta, she took up yoga and spent moretime on writing. Notably, she wrote a book during the lockdown and wantsto continue writing. Incidentally, her book, Limitless: The Power of Unlocking Your True Potential, is scheduled to be released on Monday. In termsof holidays, Gupta has been on a few short trips to Rishikesh and Udaipur (for an office offsite), and a couple of other places. "However, travel was restricted because of my pregnancy, and is likely tobe so for a while," she said.