Investors should avoid chasing “once-in-a-lifetime” investment opportunities driven by market narratives and fear of missing out, Nilesh Shah, Managing Director of Kotak Asset Management Company, said at Kotak Private’s Take and Counter Take (TACT).
Speaking on “Is the Future of Wealth Creation Shifting from Public Markets to Private Markets?”, Shah said investors should remain patient and selective, noting that missing one opportunity does not mean missing the entire wealth-creation cycle. He also argued that the distinction between innovative startups and large listed companies could increasingly blur as established businesses create independent, startup-style units to pursue innovation.
Citing an Indian manufacturer developing a specialised component produced by only three companies globally, Shah said the company created a separate R&D unit with its own culture, working hours and mandate, giving it resources to pursue the technology independently.
Shah also said India had a form of private equity long before formal PE funds emerged, with families and communities providing capital to new businesses. He said such informal funding could increasingly become professionally managed.
In Kolkata, the evolving investment landscape could broaden opportunities for investors as established companies increasingly pursue innovation through dedicated ventures alongside traditional public-market businesses. However, Shah’s emphasis on discipline suggests investors may need to assess such opportunities on fundamentals rather than market-driven urgency.
Overall, Shah said wealth creation could increasingly come from a mix of startups, listed companies’ entrepreneurial ventures and professionally managed community capital.