80% of your portfolio should be ‘Dal-Chawal’: Radhika Gupta’s investment mantra

Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, offered a grounded yet optimistic take on India’s bullish stock market during a session at the India Today Conclave Mumbai 2024.
Amidst the excitement of stock markets hitting record highs, Gupta’s message focused on the importance of disciplined, long-term investing—what she calls “Dal-Chawal Investing”—a simple and sustainable approach she believes will help investors navigate the market’s highs and lows.
Gupta highlighted the rise in Systematic Investment Plans (SIPs) as a reflection of the growing risk appetite among India’s younger generation.
She observed that today’s youth are just as willing to invest in the markets as they are to queue up for Coldplay tickets or the latest iPhone. “We think acche din will last,” she said, expressing confidence in the market’s continued growth and stability over the next 5-10 years.
With India’s vibrant IPO market and mid- and small-cap companies expanding, Gupta believes the excitement in the market is far from over.
However, she also stressed the need for balance, introducing her “Dal-Chawal Investing” philosophy.
“80% of your portfolio has to be dal chawal,” she advised, comparing simple, core investments to a staple Indian meal that provides steady nourishment.
In contrast, she cautioned against over-reliance on what she called “pickle and chutney funds”—high-risk investments that could lead to financial indigestion if not managed carefully.
Gupta’s insights came alongside those of other market experts.
Navneet Munot, MD & CEO of HDFC Asset Management, reflected on the impressive growth of the Sensex, from 400 points to 85,000, highlighting that India is experiencing an “economic miracle”.
He urged investors to trust in the power of sound investments, patience, and the ever-increasing influence of domestic retail investors.
“We should not underestimate the strength of retail investors in shaping our market,” Munot added.
Meanwhile, Manish Chokhani, Director of Enam Securities, addressed the exuberance surrounding small-caps and the SME space, noting that while these segments show tremendous potential, they also carry risks.
He warned of possible red flags but stressed that staying disciplined with a solid asset allocation strategy is key to long-term success. “Have the right asset allocation mix for longevity,” he advised. “Keep on the wicket, stay on the crease—don’t leave the playing field.”
With these balanced insights, the panellists urged investors to focus on steady growth, underpinned by a disciplined, long-term strategy, even as the market buzzes with excitement.