WF: We have seen quiet a sharp correction in the equity markets. What is your view on where markets are headed what are you advising your clients to do? What are clients doing right now - are they worried?

Roopa: I think the worry part is not there. Many of my clients have been waiting to enter the market, for the last few days they wanted corrections - now, we've got one.

I am advising my clients on the equity market to do an STP for the next 6 months, because you would have lot of events which would happen in the next 6 months. It would be very difficult for us to time the market but I think that in next 6 months the things will settle and I would rather do the STP in the equity funds.

WF: Do you see clients redeeming? Are there worries about a crash?

Roopa: I don't see any redemption happening at this point of time. My clients are not panicking saying that we need to take out the money. That's because for my clients, we've done asset allocation, so taking out money is not an issue. On the contrary, they want to enter the market because they were on the sidelines for quiet sometime. I am advising all of them to do only STPs.

One thing I have also been telling clients is that even debt looks very good in the long term. I am also advising people to look at debt as a product because during the monetary policy which is going to happen tomorrow I think if you enter debt you would have decent 7.5% to 8% return for next one year. Income funds and gilt funds make sense at these levels.

WF: There are a lot of investors who invested 2-3 years ago and who are now seeing their investments finally come back to cost. Many of them seem to be anxious to redeem their investments. Are you seeing any such trends among your clients?

Roopa: No I don't think so. As a policy, the way I work with my clients is that we make investments but very rarely disinvest. We anyway invest with a 5 year horizon - my clients aren't looking to get out at cost - as long as we all believe that in the long run, there is good money to be made by staying invested.

The other thing is that I am very selective about the funds I recommend to my clients - they all have excellent long term track records. So, the need for us to constantly re-evaluate the holdings is really not there. As long as you are invested in the right products, there is no need to redeem.

WF: Do you see all this global newsflow having a material, lasting impact on our markets?

Roopa: See, we will always have news flows coming in and it will have its momentary impact on markets. I have seen this over the last 6 years - and yet, if you stay invested in the right funds, you are well rewarded, over time. That is the market opportunity - that is what we must optimize for our clients. The key is to do asset allocation and have a well diversified portfolio.

In fact, talking about diversification, I am also looking at some of these international funds for my clients. I think there are a number of interesting options available now, and can be useful additions to client portfolios.

WF: Lastly, you have been a strong advocate for gold in your client portfolios - any changes in this view?

Roopa: I continue to recommend gold - but again only through an STP route. Wherever my clients are not yet at 10% of their portfolio in gold, I will be using this correction to enhance their exposure to gold upto 10% of their portfolios.