- Nithin Kamath has cautioned that the rapidly growing Margin Trading Facility (MTF) is one of the biggest risks for brokers. With nearly Rs.9,000 crore of MTF exposure, particularly in non-F&O stocks, a sharp market correction could trigger margin calls, forced selling and intensified declines in small- and mid-cap stocks. Investors should remain cautious while using leverage.
- The South Korean Kospi Index, despite correcting 45% from its peak, is still 130% above its April 2025 lows, highlighting how excessive leverage and MTF can amplify both market rallies and sharp corrections.
- Many investors spend years searching for the “best” mutual fund while overlooking the importance of discipline, consistency and staying invested. Long-term wealth creation is driven by clear financial goals, regular portfolio reviews, disciplined investing and the right guidance rather than chasing short-term performance.
- Mukul Agarwal follows the philosophy that “Price is God” and combines momentum-driven trading with long-term investing. His portfolio has grown from Rs.432 crore in 2018 to Rs.7,727 crore in 2026, while currently holding 74 stocks, demonstrating the power of disciplined execution, active portfolio rebalancing and long-term wealth creation.
- Market corrections often create the best opportunities for long-term investors by bringing quality stocks to attractive valuations. India’s structural growth story remains intact, supported by healthy GDP growth, resilient domestic consumption, PLI-driven manufacturing, rising infrastructure spending and improving corporate balance sheets. Inflation remains under control, while FIIs have turned net buyers again in July 2026 after a prolonged selling phase and DIIs continue to provide strong support. If earnings growth and capital inflows continue, the current correction could lay the foundation for the next leg of the bull market.
- India’s mutual fund industry still has enormous growth potential. Total mutual fund AUM stands at Rs.82.22 lakh crore (~US$980 billion), with only around 4% of the population investing and mutual fund AUM equivalent to 25.4% of GDP. In comparison, the US mutual fund industry manages US$33.15 trillion, with 38% of the population investing and AUM equal to 137% of GDP, indicating significant long-term growth potential for India’s mutual fund industry.
