Mkt volatility no enemy, says Madhusudan Kela

Madhusudan Kela, a seasoned investor, recently addressed concerns about market volatility, suggesting that while annual returns may moderate to 10-12%, this should not deter long-term investors. He emphasized the importance of identifying 'hidden gems' in the market, particularly in sectors like artificial intelligence, which can drive productivity and profit margins. Kela highlighted that volatility should be seen as an opportunity rather than a threat, advising investors to focus on resilient entrepreneurs and the compounding effect of disciplined investment. He pointed out that Indian capital markets are robust, supported by domestic capital and a growing pool of retail investors. Kela praised mutual fund participants for their steadfastness amid fluctuating market conditions, asserting that equity investing has evolved into a mainstream asset class for long-term wealth creation. He also illustrated the power of compounding with an example, indicating that saving ₹11,000 monthly in a mutual fund could yield significant returns over time. Kela remains optimistic about India's economic growth, predicting that domestic investment flows will continue to grow over the next decade, despite potential disruptions from technological advancements.