Watch & Learn
Nilesh Shah on becoming a better investor, Mutual Funds and SIFs, and human expertise
In this short conversation, Nilesh Shah names execution, equilibrium and discipline as the qualities that separate investors who succeed from those who do not, describes Mutual Funds and SIFs as serving different purposes inside a portfolio, and argues that technology handles the rational side of a decision while human connection handles the emotional side.
Nilesh Shah·Managing Director, Kotak Mahindra Mutual Fund·3 September 2026·3 minutes 21 seconds·In conversation with Inderpreet Kaur, FinEdge Brand Communication
What this covers
The conversation moves through three questions in a little over three minutes. On what makes a better investor, Nilesh Shah puts execution first — thinking about a decision is not the same as acting on it — then equilibrium between greed and fear, then the discipline to hold a course when conditions are difficult.
On Mutual Funds and SIFs, he declines to choose between them. He describes SIFs as the lower-volatility, lower-risk and therefore lower-return part of a portfolio, and Mutual Funds as the higher-risk, higher-return part, using the image of an accelerator and a brake in the same car.
On technology, he separates the rational and emotional parts of an investing decision. Technology and AI can carry information, knowledge and intelligence; the emotional connection that comes from a person who knows the investor is what he expects to remain human, alongside — not instead of — the technology.
Execution, equilibrium and discipline decide investor outcomes; Mutual Funds and SIFs answer different questions inside one portfolio; and technology strengthens the rational half of a decision while the emotional half stays human.
Full transcript
FinEdge Video Review — A Quick Q&A with Nilesh Shah, section 6 Full Transcript. Supplied by Leadership, 3 September 2026.
Inderpreet Kaur:
Today we have a very special guest with us at FinEdge, Mr. Nilesh Shah, Managing Director of Kotak Mahindra Mutual Fund, and we thought, let's make the most of this opportunity with a quick-fire Q&A to hear his views.
So, let's get started.
Sir, from your experience, what are the three things that make someone a better investor?
Mr. Nilesh Shah:
One, execution is key. Anyone can think about it, but whether you act on it that determines success.
The second thing is equilibrium.
We are all human. We get driven by greed. We get driven by fear. What we need is equilibrium neither fearful nor greedy.
And final, third thing is discipline.
Discipline to stay on your course when things are bad. It's like how Rishabh Pant is batting on a pitch which is not conducive for batting. He's committed to it. He's disciplined on it.
So, if you focus on execution, if you remain balanced between greed and fear, and if you're disciplined in your approach, I think success will follow.
Inderpreet Kaur:
So, if Mutual Funds and SIFs were your two friends, which one would be your favourite and why?
Mr. Nilesh Shah:
Both serve different purposes. Both need to be part of the portfolio.
SIF is for that low-volatility, stable return. There is lesser risk and hence lesser return.
Mutual Fund is a roller coaster. There will be higher risk than SIF and hence higher return.
I need both accelerator and brake in my car. I can't drive without them.
Inderpreet Kaur:
Definitely, a balance.
And as you know, technology continues to evolve and reshape investing. How do you see the role of human guidance evolving alongside it?
Mr. Nilesh Shah:
So, humans are rational, but they are emotional.
Technology can deal with the rational part of the brain.
How do you deal with the emotional part of the brain?
For example, you walk into a customer's office. They have experience of you. They will deal you with emotionally as well as rationally.
But imagine if a robot walks in. He'll have more information and knowledge probably about them than what you will have. He'll be probably more intelligent because of the AI.
How will he develop that emotional connection?
So, humans which can provide connection on emotional basis will still do well, and you'll have to leverage technology anyway.
So, it's not that you are going without technology, but robots will not be able to develop emotions as humans can.
Thank you.
Where to go next
- Investing best practicesExecution, behaviour and discipline, worked through in full.
- Specialised Investment FundsThe FinEdge view on what SIFs are and who they suit.
- How FinEdge uses AIWhere technology helps a decision, and where a person still does.
- Nilesh Shah at FinEdgeHis written contribution to FinEdge readers.
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