Nilesh Shah, the managing director of India’s fifth-largest mutual fund Kotak Mahindra AMC, is known for his quick-witted answers and a knack for explaining seemingly complex things with relatable analogies
In a recent interview with ETMarkets, Shah described the state of the Indian stock market in 2022 through a movie dialogue from K Asif’s 1960 magnum opus Mughal-e-Azam.
He quoted a dialogue from Prithviraj Kapoor, in which the actor who played Emperor Akbar in the movie, tells actress Madubala, who played Anarkali, “Salim ki mohabbat tumhe marne nahin degi, aur mahabali Akbar tumhe jeene nahin denge (Salim’s love wouldn’t let you die, and the great Akbar won’t let you live”.
This is exactly what happened to India equity markets in 2022, he said.
“India’s growth story was not letting the market fall, whereas FPI selling was not letting the market rise,” Shah said.
The India stock was one of best performing in 2022, but continued sell-off by foreign investors kept gains moderate.
Wife
Nilesh Shah explains mutual fund industry expenses, costs
In yet another interesting analogy, Shah explained the high costs associated with the mutual fund industry in a very relatable manner by comparing the scenario with managing household expenses.
Shah also quipped that it is because of the money-management skills of his wife that he is able to retain his job at Kotak Mahindra.
“I get a salary of Rs 100 and 43 is taken straight away by the government (in form of personal income tax), so I am left with 57. I contribute Rs 10 in NPS and Rs 10 in PF for future savings. I am effectively left with Rs 37. Sebi takes Rs 20 out of it through skin in game circular, and I give Rs 17 to Parul Shah. As long as she manages my house in Rs 17, I can work in Kotak Mutual Fund. As long as we have women like Parul Shah, we will have talent in the mutual fund industry,” said Kotak Mahindra AMC MD in a panel discussion with Money Control.
