Nikhil Kamath of Zerodha tells where to put your money, and it’s not equity

In today’s market conditions, Nikhil Kamath, founder of Zerodha and True Beacon, appears to believe in making an investment in limited income and gold, as the equity market appears overpriced.

“I believe that asset classes are currently overpriced. As a result, my exposure to gold and fixed income is high, accounting for up to 65 percent of the portfolio. The plan is to wait for a correction, after which I hope to increase my equity allocation in the coming years. “I’m still a big believer in equity investing, and it’s as cheap as it is today because of current valuations,” Kamath told Business Today.

He obviously believes in diversifying his portfolio, which is currently comprised of Equity, Fixed Income, Debt, Gold, and Real Estate. “Equity is about 40 per cent, debt is about 45 per cent, gold is 10 per cent, and property investment and alternatives together constitute the remaining 5 per cent. As valuations become less expensive over time, I will indeed look to increase my equity exposure – having a higher equity allotment makes sense, given the tax advantage and power of compounding,” Kamath explained.

Nikhil Kamath

When asked about the ten-year themes to watch for, Kamath mentioned energy transition. “As we move towards more efficient energy sources, everything from green hydrogen to renewables, geo-engineering, and climate-tech will be quite large as a space in the next ten years, with many large companies forming in the sector,” he predicted.

Kamath also noted the money blunders that investors should avoid. “Short-term planning and investing while not paying attention to how macro winds change and not acting quickly enough – many times, you feel like you should change a certain thing in your portfolio but don’t act quickly enough,” he explained.

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