Unlock Leadership Excellence with our CXO Course Range
| College offers | Course | website |
|---|---|---|
| Indian Business School | ISB Digital Director | Visit it |
| IIM Lucknow | Principal Director Program | Visit it |
| IIM Lucknow | Chief Operations Officer Program | Visit it |
Nilesh Shah: Of course the market can stay more irrational than you can stay solvent. And it is not the Indian market that prohibits certain categories from seeing high prices or very expensive fashions. Well, one can say that Indian investors are like Indian cricket spectators. When the Indian cricket team wins all the matches in T20, we expect them to win the World Cup.
In the same way, the Indian market is also discounting all the positives and we hope that this trend will continue. Are we more optimistic about our market? The answer is definitely yes. But are we being irrational about a market that doesn’t have a few pockets? The answer is no.
How much power is there in the local market and the flow is just global? While we feel very excited about India, the bottom line here is that the Nasdaq is top, the S&P is doing very well. So, the pillar in equities that is rallying is also global.
Nilesh Shah: Of course, it is a combination of local and global. Global investors have been behaving in an uncertain manner. One month as a buyer, two months as a seller. They are sellers in one month, buyers in two months. But there have been net incremental purchases in the last two-three years and that has contributed to our market. Obviously, the market also expects that there will be no impact of geopolitical escalation on energy prices. The Fed will cut rates, so our market combines local and global factors.
We understand that you were also part of the pre-budget meeting and consultation with the finance minister. What color should we expect in terms of taxes, for the capital market and at the individual level because that is where all the hope lies.
Nilesh Shah: So, it’s one-way communication from our side, not two-way communication from our side. But we recommend the finance minister that you have done an excellent job and we, the fund industry, are the biggest beneficiaries of the great work done by the finance ministry. Voting on the account laid the foundation for a public meeting in the market when people realized that the budget can be pro-growth in terms of investment and infrastructure and yet fiscally wise. With the RBI’s additional dividend of nearly Rs 1,23,000 crore last year, the fiscal space has increased. They can provide a budget that votes in the account, continue to advance in terms of fiscal prudence as well as growth.
One recommendation from the mutual fund industry is that under the regulator SEBI, we have done an excellent job of spreading financial awareness. And today we see 4.5 crore investors securing financial freedom through investment in mutual funds. But there is still a large section that has not invested in financial instruments properly.
During FY21-23, mutual funds got around Rs 4 lakh crore inflows; Rs 9 lakh crore or double of that money went to currency notes which depreciated assets. So, we request the finance minister to open a copy of the Jan Dhan scheme that provides banking to every Indian, the same Jan Nivesh Yojana that can create push and pull for financial investment, so that people can secure financial freedom through capital. market.Ridham Desai last week said that if you look at Indian savings, less than 5% is in equity. The same thoughts are expressed by you and all the other market veterans. Can I say that the entire domestic flow coming into Indian equity is a multi-year flow and we are looking at at least Rs 2,20,000-2,30,000 crore every year, continuing for the next four to five years?
Nilesh Shah: When we launched SIP Day, we talked about the retail tsunami coming to the market and it was a dream come true. Hopefully one day it will become a reality before I retire. Today, it is great to see that 4.5 crore Indians are securing financial freedom through mutual fund investments. Those who started early are now enjoying the fruits. The portfolio’s return exceeded expectations. Right now, our focus is that we’ve got an early start. Now, we need to build momentum. People lose money in Ponzi schemes. People lose money by investing in currency notes and cryptos and NFTs. People spend their fortunes in the lottery. All this does not create financial freedom for them.
Many people depend on the next generation and become a burden. I think it is important to create financial security for every Indian through participation in the capital market where they can generate real returns. How can we make the country rich when 93% of savings go below inflation or the product yields inflation? Only 7% goes to the above inflation return product. We need to ensure that the 7% continues to grow and Indians become rich.
