Nikhil Kamath discussed “funding winter” and his aspirations to expand his wealth management business in an exclusive interview.
Nikhil Kamath prefers to invest in the NASDAQ and the Indian large size equities market. According to the creator of Zerodha in an exclusive interview with Business Today, “If I had Rs 100, I would invest in NASDAQ, Indian large cap equities market, followed by the private enterprises.”
According to Kamath, NASDAQ-listed businesses are a major source of the innovation taking place in the globe today. In comparison to public markets, he claimed that private markets are more expensive and frothy. Additionally, he stated that for the same reason, he would favour international markets over Indian public ones.
Together with his brother Nithin Kamath, Nikhil founded the stock brokerage firm Zerodha in 2009. Through their investment and incubator companies, Rainmatter Climate and Rainmatter fintech, the duo has made investments in a number of start-ups. Prior to a few years ago, raising cash was a hot topic. Valuation had essentially become a catchphrase.
The situation is, however, altering right now. One of the most well-known examples of a successful startup that has been bootstrapped from the start is Zerodha.During the early years of founding Zerodha, Kamath was enticed to raise money, but the situation was different. “Not many people offered us money when we needed it,”
Additionally, Kamath stated that Zerodha had no intentions of going public. If we raise the money, he says, “We don’t need [or] have an application for money.”
On the other side, he is currently concentrating on growing TrueBeacon, his wealth management business. Kamath and Richard Pattle, a former vice chairman of Standard Chartered Private Bank, founded the Bengaluru-based organisation in 2019.
The platform solely serves Ultra High Net Worth Individuals and functions as an Alternative Investment Fund (AIF Category-III) (UHNIs). It was started with the intention of lowering investment costs, increasing transparency, removing distributor commissions, and altering the nation’s approach to asset management.
People are unaware that if you pay accumulating fees of 3–4% each year—which include setup costs and exit loads—if you compound that sum over 20–30 years, it will eventually exceed the principle sum.
Making TrueBeacon a full-service wealth platform “without the leakage of a distributor” is the long-term objective, he said.