Uday Kotak On Why India's 'Savers To Investors' Trend Will Continue In Samvat 2082

Uday Kotak, founder and non-executive director of Kotak Mahindra Bank, highlighted that the savers to investors trendline will continue in India for the incoming Samvat 2082 in his Diwali wishes, via a video message.

According to Kotak, the trend will continue as significant flows into mutual funds and equity markets can still be seen. Further the current tax regime of higher tax on income, and lower tax on gains is supportive of the savers to investors trend. Finally, he said, the government's GST revamp and zero tax up to 12 lakh change, has also come to aid this shift by supporting the domestic economy.

Although bullish about investing trends in the future, the founder acknowledged that Samvat 2081 was a difficult year for investors marked by muted returns due to geopolitical tensions, wars, tariffs, and a flood of other uncertainties.

Kotak said that these developments, "clouded the horizon" but Samvat 2082 will begin with more clarity.

He advised investors to become more alert and even "paranoic" in order to face a tougher world.

"We should get out of our comfort, convenience and complacency zones to build an India and an Indian business which is ready to take on the world", he stated.

Expressing his wishes for the corporate India, which contains the faith of countless investors, the founder said that he hopes to see them wake up to this challenge and focus on building companies sustainably for the future and also improve over time the earnings of of the companies, "So that the current high PE ratios get justified and for investors to continue putting money into the equity markets at the securities firm."

He advised firms to take a more medium-term view about their customers and said, "This excessive focus on churn as the basis of driving investor and saver behavior needs to change to make investors more committed and get sustained returns in the markets."