'Invest For A Decade': NSE CEO Warns Investors Against Quick Profits, F&O Trading Risks

National Stock Exchange (NSE) Managing Director and Chief Executive Officer Ashish Kumar Chauhan has cautioned investors against chasing quick profits, following unsolicited stock recommendations and trading in derivatives without adequate knowledge.

As per a report by NDTV Profit, Chauhan stressed the importance of patience, financial discipline and a long-term approach to equity investments.

He advised investors to consider investment horizons of three to five years, or even a decade, rather than attempting to profit from frequent intraday transactions.

Chauhan also warned against making investment decisions based solely on television discussions, market rumours or speculative news.

Chauhan said investors should understand the risks associated with futures and options (F&O) trading before participating in derivatives markets.

He cautioned that trading without sufficient knowledge could result in substantial financial losses.

Investors should also avoid borrowing money for speculative investments or committing amounts beyond their financial capacity, he said.

For individuals lacking the time or expertise to monitor companies, economic developments and stock market movements, Chauhan recommended mutual funds and professional investment advisers.

He compared financial decision-making with healthcare, noting that people generally consult qualified doctors rather than attempting treatment without specialised knowledge.

Chauhan emphasised that market fluctuations were inevitable and that investors should remain disciplined instead of reacting impulsively to short-term volatility.

Chauhan also discussed the growing influence of artificial intelligence (AI) on investment opportunities in India.

Drawing parallels with the internet-driven technology boom of the late 1990s, he cautioned against excessive optimism surrounding AI-related businesses.

He referred to the dot-com boom between 1998 and 2000, when enthusiasm for emerging technologies contributed to inflated market expectations.

Although AI could create significant opportunities over the coming years, Chauhan warned that investors should not assume a handful of companies would capture all the benefits.

He said excessive speculation could push valuations beyond sustainable levels, exposing investors to sharp corrections.

His central message was to prioritise informed decisions, manageable risks and sustained participation over short-term speculation.