Time will tell if it's a bear mkt: Nikhil Kamath

With the US market in a bear grip and Indian headline equity index Nifty plunging 15 per cent below its peak, many market experts have already started calling it the advent of a bear market on Dalal Street as well. Nikhil Kamath, Co-founder, True Beacon & Zerodha, however, says only time will tell whether or not this is a bear market. In this interview, he also talks about the idea behind launching True Beacon Wealth to manage money for ultra-rich investors. Edited excerpts:

After being a trader and a broker as well as running AIFs, PMS seems like a natural extension in the domain. How challenging do you think the new journey is going to be for you?

True Beacon Wealth is our foray into bringing our transparent, competitive fee structure and active asset allocation approach to the PMS domain. True Beacon Wealth will additionally extend personalised, discretionary attention to UHNW clients, which is something that will be exciting for us.

Although growing fast, the PMS space is no less crowded. What is going to be the differentiating factor for True Beacon as a late entrant in the market?


We’ll have capabilities to have direct commodities exposure. We’ll also have access to ultra-conservative products like G-Secs and managing time-varying risk profiles via derivatives. Additionally, there will be high levels of bespoke client service constructing portfolios around individual circumstances.

Why do you think it is a good time to start a PMS when the equity markets, not just in India but globally as well, are going through a rough patch?

True Beacon Wealth is focused on building sustainable wealth. A long-term approach, while being cautious is not hindered by market conditions with a focus on compounding wealth over a long period of time. It is a natural progression in our journey at True Beacon. Launching this service was always a part of our vision.

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One of the top worries for investors right now is the possibility of a recession in the US. How bad do you think it is going to be for Indian investors if the fears come true?

While there is always a bit of correlation with our western peers, I have a strong faith in the Indian growth story. It is hard to predict the impact, however being cautious would be our approach.


Nifty is down 15% from its peak. Do you think we might be headed towards a bear market, or this is just a correction in the pandemic bull run?


As a trader, I have never tried to time the market, so only time will tell whether or not this is a bear market. However, to keep things in perspective, the markets have still not corrected to the levels before the euphoric rally we witnessed last year.


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Harry Byrne

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