Investors are often told that the next big wealth-creation opportunity is just around the corner — and that missing it could mean missing out forever. But Nilesh Shah, Managing Director of Kotak Asset Management Company, offered a sharply different message: patience may matter more than urgency when navigating private markets, startups and emerging investment themes.
Speaking at Kotak Private’s Take and Counter Take (TACT), a thought-leadership platform that discussed whether the future of wealth creation is shifting from public to private markets, Shah cautioned investors against allowing fear of missing out to dictate investment decisions. He argued that attractive opportunities would continue to emerge and that investors should not treat every new opportunity as a once-in-a-lifetime chance.
“You should never ever chase any investment because the sell side is saying this is once in a lifetime opportunity,” he said, adding that missing one opportunity should not be treated as an irreversible loss.
The message was particularly relevant to the growing interest in private-market deals, IPOs and emerging investment themes. Shah’s argument was that investors should remain selective rather than allowing urgency or market narratives to override investment discipline.
In his analogy, if one train leaves the platform, another will arrive. The underlying message was clear: the cost of entering an unsuitable investment can be greater than the cost of letting a promising one pass.
Listed companies could create the next wave of startups
Shah also highlighted a potential shift in how investors should identify future growth businesses. The traditional distinction between startups and large listed companies could increasingly become blurred, as established businesses create dedicated entrepreneurial and innovation units within their organisations.
According to Shah, some listed companies are already creating startup-style units with separate cultures, working models and mandates.
“My feeling is that this distinction where startups will do innovation and large companies will be dinosaur, hopefully will start getting blurred,” Shah said.
This could change how investors look for the next generation of growth businesses. Rather than limiting the search to privately funded startups, investors could increasingly find entrepreneurial ventures being developed within established listed companies.
India’s private equity culture could become more structured
Shah also challenged the idea that private equity is a relatively new phenomenon in India. He pointed out that the country has historically had an informal form of private-equity culture built around families, relationships and communities.
“Relative giving seed money to a relative to start a business is also private equity,” he said.
According to Shah, this informal model could increasingly evolve into a more structured and professionally managed form of community capital. What was traditionally handled within families could move towards professionally managed pools of capital involving wider communities.
He said this transition could create another avenue for wealth creation, particularly as investment structures become more organised and professional.
“If this model is successful, I’m sure other communities will copy,” Shah said.
The broader takeaway from Shah’s comments was that the investment landscape could evolve on multiple fronts simultaneously.
For investors, however, the central message remained one of discipline. Shah’s comments suggested that the fear of missing the next big opportunity should not become a reason to compromise on investment selection. Opportunities, he argued, would continue to emerge across public markets, private markets, startups and established businesses.
As the boundaries between these categories increasingly blur, identifying sustainable wealth-creation opportunities may require investors to look beyond the conventional — while maintaining the patience to wait for investments that fit their objectives.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
