Kotak Mahindra Bank managing director and CEO Uday Kotak on Friday said passive funds are the biggest risk to expensive mutual funds. Speaking at the CII Financial Markets Summit in Mumbai, Kotak said, “If the performance of discretionary funds for a long period of time is below the performance of ETFs, as it has happened globally, we run the risk of money. There is a period where literacy is behind the curve, but sooner or later it picks up.”
On the goal of India becoming a $5-trillion economy by 2024, Kotak said the country has moved a long way from the traditional banking model of “saver and borrower” to the market model of “issuer and investor”. The transition and the two models co-exist today and there is a need to have a holistic view in policy making to ensure challenges are effectively met.
