Looking for wealth creation avenues to weather inflation, growth risks? Here’s what you can do

In a fast-changing global environment where inflation and growth risks persist, not getting swayed by short-term momentum is essential, believes Gautam Shroff, MD and Head – Institutional Clients Group at Nuvama Wealth Management. “Given that growth and inflation are the main concerns, I think debt instruments along with quality companies will do well,” Shroff told ETMarkets in an interview.
Edited excerpts:
What’s your mantra of wealth creation and what’s your advice to an investor ready to put Rs 10 lakh in the market today? Where and how should this money be invested?
My mantra of wealth creation is minimising risks and avoiding pitfalls. Focus on consistency, process and results will follow.
Market narratives keep changing very rapidly, so don’t get swayed by short term momentum and have the long-term thought process, stick to quality.
Today, given growth and inflation are the main concerns, I think debt instruments along with quality companies will do well.
If you think rate hikes are approaching a peak, gold as an asset class will be in favour too.

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Which is the best small savings scheme that you think every individual should invest into from a long-term savings perspective?
PPF – Public Provident Fund and it’s easily accessible.

Recently, Sebi introduced a regulatory framework for online bond platform providers. Your thoughts about it?
The recent circular is aimed at bringing online bond platform providers (OBPPs) under the gamut of regulation by the regulator. We believe this is in light of the growing number of OBPPs, and higher interest of retail/mass affluent wealthy clients in this segment, away from traditional fixed income products like FDs.
I think with OBPPs being regulated, it’s good for long term development of this market channel and retail awareness increases in this segment of the market nonetheless.
Unlike equities, retail participation in fixed income markets are not meaningful , so do not see these regulations changing market dynamics in any way in the near or medium or long term.
India is increasingly seeing new-age businesses coming forth to tap the capital markets. We have seen what has happened to the likes of , , shares post the listing. As an investment banker, what are the challenges you face while evaluating IPOs of businesses that are non-conventional?
Education and creating awareness amongst market participants of various business models is a challenge.
Public market investors still believe in strong balance sheets and cash flow rather than platform companies for engagement.
I think a mindset change is required to evaluate different metrics. A lot of companies are nascent and do not have decades of track record.
2022 has been robust when it comes to public issues. Do you see this trend continuing in 2023? Do you think fundraising via IPOs will hit a new peak in 2023?
Post Covid, one big difference is the balance sheet structure of companies wherein larger share is of equity versus debt for their growth plans. Many new age businesses are maturing and India is standing out on all parameters. So, I am optimistic about the primary market in 2023.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)