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Home / Money / Personal Finance /  An angel investor’s investment plans that saw 8X markup

Pravin Jadhav, known as PJ in financial circles, was formerly the chief executive officer of Paytm Money. Jadhav left Paytm in early 2020 and launched a new startup — Raise Financial Services. As an investor, he is extremely aggressive. In this piece, we explain how Pravin Jadhav invests his personal savings.

Jadhav had sought to build and scale Raise, a financial services firm, from Bangalore, but the covid-19 pandemic interfered with his plans. Raise is now headquartered in Mumbai and hosts a 200-member team. A big part of Raise is a trading app Dhan—aimed at traders and active investors. Jadhav’s plan is to pack Dhan with product and technology-led features, an approach that he says will give it an edge over rivals.

Even as Jadhav is focused on building Raise, he invests a very large chunk of his personal portfolio in other startups. “Some of the recent ones that are already in the public domain include WintWealth, OneCode, Stoa School, GrayQuest, Zeda, Junio, and ePlane Company. What matters most to me is how disciplined the founders are and their passion for work, besides of course their product and go-to-market. I have even invested in Raise Financial in a personal capacity along with our investors; it’s important to have skin in the game," Jadhav told Mint. This, though, was a recent shift. “I believe angel investments are very risky and I stayed away from that for a very long time. I started investing in startups some 18-24 months back and my current portfolio has more than 25 angel investments. I end up doing 2-3 investments every quarter. Being connected with the startupand tech ecosystem helps here," he said.

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Jadhav says his angel investments have seen an eye-popping 8X markup. However, he dismisses this appreciation as ‘paper money’ and says that it will take patience for this to translate into real money.

Alongside startups, a major allocation is in direct stocks (45% of the portfolio), implying that Jadhav is a high-risk investor. He isn’t really shifting between segments in equity, but has systematic investment plans (SIPs) in stocks. “On the equity side, I am doing more stock SIPs now—these are mostly in large caps, and some conviction plays out in small and mid caps," he said.

Jadhav avoids futures and options trading, despite it being a large area of focus for Raise. “Trading takes up a lot of attention and bandwidth. And in market hours I have a choice to make—to either trade personally or ensure that customers of Dhan are served well. I choose to be on the side of our customers," he said.

Despite his background in running a mutual fund investment platform (Paytm Money), Jadhav currently invests just 10% of his personal wealth in mutual funds. Of this 10%, themajority (80%) is again held in equity mutual funds and the balance in debt mutual funds.

Jadhav does have an emergency fund—fixed deposits that constitute 8% of his personal portfolio. He does not invest in gold, except for the occasional small purchases for his family. Jadhav has also avoided international stocks so far, but he wants to invest in them. He is also working on creating a platform for buying international stocks through the Dhan app. “I had evaluated the opportunity to invest in companies like Google, Facebook and Amazon back in 2014-15; I skipped it as I thought they were expensive. I was wrong about that, over a period of time, I realized that large tech firms end up becoming larger as they expand in large markets or create new markets. So, yes, I will be investing via Dhan, most likely in the next few months," he said.

Ever since he became a startup founder, Jadhav says he hasn’t had the time to take a proper vacation in the past two years. He did, however, get to binge watch some old movies from the 1950s to the 1980s, a habit that he says soothes him and will continue post the pandemic.

Readers should note thattheir risk profile, goals and wealth levels may not be commensurate with that of Pravin Jadhav, who is a high-risk investor.

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