Gold can rise further if China diverts some of its forex: Nilesh Shah

In a Q&A, the MD & CEO of Kotak AMC explains why SIPs make a good bet in the current scenario and why leveraging can prove disastrous

Systematic investment plan (SIP) investors stand a good chance at investing, given this is an opportune time to average. Nilesh Shah, managing director and chief executive officer, Kotak Asset Management Company, in conversation with Rajesh Bhayani sounds a note of caution saying this is also the period where leveraging can be potentially lethal. Edited excerpts:

All financial asset mutual funds — equity and debt, equities, currencies, and most commodities — are caught in a downward spiral. The only segment with protected capital is fixed deposits and small savings.

There are many debt funds - overnight funds, liquid funds, ultra short-term bond funds,