Devang Mehta, Deputy Managing Director and Chief Investment Officer of Equity at Spark Capital, stresses disciplined investing for building wealth, especially as India's market shifts . In a recent interview, he shared thoughts on investor behavior and India's long-term growth potential.
Mehta's finance journey began at 14,when his father introduced him to IPO investing. This early start laid foundation for a career over two decades in top financial institutions . To him,investing is more than work; it's a lifelong passion. "Markets reward those who stay patient and disciplined," he said,drawing from his extensive experience .
Market cycles have taught Mehta lessons, especially about humility. Triggers for crashes vary—1992 scam,2000 dot-com bubble,2008 subprime crisis,2020 pandemic—yet human behavior is constant. "Greed and fear drive markets," he explained. Key isn't predicting crises,but managing response. He urges investors to focus on portfolio quality,asset allocation,risk management,not market noise.
Post-COVID,first-time investors have changed the scene. Mehta noted many now seek guidance on continuing SIPs during volatility,showing maturity. "Domestic investors now understand compounding better and invest with longer horizon," he observed.
Domestic investors crucial now,Mehta says. Indian market,once reliant on foreign investors,has shifted. Rise of domestic mutual funds and retail players boosts market resilience,reducing foreign capital dependence.
On AI's market impact,Mehta said India's growth isn't just AI-driven. He pointed to strengths in consumption,infrastructure,financialization. "India is a real intelligence trade," he remarked,noting growth goes beyond tech themes .
Mehta sees three sectors driving India's growth: Consumption,Capex,Creation. Rising incomes,aspirations fuel consumption. Infrastructure spending on roads,ports,logistics supports long-term growth. IT strong,but niche growth potential attracts attention.
Interest in mid-cap,small-cap companies grows,improved by better governance,management. But Mehta cautioned: due diligence is key,as not all mid-caps,small-caps are equal. He recommends a long-term view,at least five years. "You will make mistakes—that is part of investing—but avoid costly mistakes," he advised.
Mehta sees India as a great opportunity for wealth creation for those patient investors willing to navigate market complexities with discipline…
