B D NarayankarIn a recently organised seminar, Aditya Birla Group chief economist, Ajit Ranade said that a slight capital price rise as compared to global standards is possible in India. Experts from various leading companies came together in Mumbai to discuss global wealth creation.
SPEAKING AT the ’Global Wealth Creation -- The Way Forward’ conference, jointly organised by Dun & Bradstreet and Deutsche Bank at Mumbai on October 16, Aditya Birla Group chief economist Ajit Ranade said, “India is a capital-scarce country. The price of capital will remain slightly high as compared to the global standards. Though there will be interest cuts all over the world, interest rates in India will be higher”.
Touching upon the topic of fundamentals of ’wealth creation’, Ranade said wealth creation was not about asset pricing, but about value creation in transactions.Chief executive officer, Proposed Asset Management Company, Motilal Oswal said, “This is the best time to stick to the basics of investment and revive investment portfolios. Wealth creation is more about buying when it’s valuable rather than when it’s cheap”.
Stressing on the needs of the PMS (portfolio management service) industry, Ashutosh Pal, business head and vice president, Reliance PMS, said, “Substantial wealth creation comes from having a large value base for a labour force. The PMS industry needs an industry an AMFI (Association of Mutual Fund Investors) for mutual fund industry to represent, safeguard and regulate its interests”.
Mrugank Paranjape, head domestic custody services, India, Deutsche Bank stressed that in the long run, if you work towards wealth creation, where it is in the interest of the customers, there is no reason why we cannot build successful sustainable wealth management business.
Delivering the welcome address, Dr Manoj Vaish, president and chief executive officer – India, Dun & Bradstreet said, “One of the reasons for the liquid crunch in the money markets is that the liquid funds were redeemed below par. The whole PMS sector is going through a sea change. India’s position in the global financial markets will become more prominent and stronger”.
Speaking on the regulatory perspective of risk factors, MS Sahoo, SEBI (Stock Exchange Bureau of India) member said, “Regulators have to forerun the financial Frankensteins. If you do not understand the product do not finance it. Make an assessment of the product, measure all its risk factors and if satisfied only then enter with it in the market.”
He further added, “short selling is not a major worry for India. No one is doing it in India at the moment”.
Highlighting the current global turmoil, Nilesh Shah, deputy managing director, ICICI Prudential AMC, said, “It’s necessary to handhold customers during this tough time. We have not performed up to their expectations. This kind of conference gives us an opportunity to comfort them, give reasons for our performance and convince them that their wealth will be created by our fund mangers”.
Dun & Bradstreet, world’s leading source of global business information, knowledge and insight, has been enabling companies to ’Decide with Confidence’ for 165 years. D&B’s global commercial database contains more than 100 million business records.
Source: Meri News
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