Future of Credit: Mutual Funds to Eclipse Banks?

Nilesh Shah of Kotak Mahindra AMC predicts that mutual fund credit will eventually surpass bank credit. At a recent event, he stressed wise investing for wealth creation. Edelweiss Mutual Fund's Radhika Gupta highlighted incentivizing young investors with lock-in periods for long-term wealth accumulation.

Nilesh Shah, managing director and CEO of Kotak Mahindra AMC, has forecasted a significant shift in the financial landscape, asserting that the mutual fund industry will one day provide more credit than traditional banks. Speaking at an event, Shah emphasized the growing role of capital markets.

He urged Indians to adopt smarter investment strategies, citing the nation's wealth issues as stemming more from poor investment decisions than insufficient earnings. The event, organized by Bain & Company and brokerage Groww, highlighted missed opportunities through unwise financial choices.

Radhika Gupta, CEO of Edelweiss Mutual Fund, advocated for investment incentives, suggesting lock-in periods to encourage wealth creation from an early age. Such measures could foster a culture of long-term financial planning and investment in India.

(With inputs from agencies.)