Investors should temper expectations and recognise that generating a 12% annual return in the stock market is already a significant achievement, according to Kailash Kulkarni, who believes India's next major economic opportunity could come from export-led manufacturing, among other themes.
Speaking at the ET Alpha Wealth Summit during a discussion on the impact of AI on India over the next decade, Kulkarni said investors often underestimate the power of steady compounding while chasing unrealistic return expectations.
"Getting a 12% return is a damn good job in the stock market," he said.
His comments come at a time when investors are increasingly debating the implications of artificial intelligence on jobs, businesses and investment opportunities, especially after AI-linked stocks have driven market rallies across the world.
Kulkarni argued that while India may not emerge as the biggest winner in the global AI race, the country has several other opportunities that could create substantial economic value over the coming decade.
"Where is the next big gold rush? Exports through manufacturing are one such area," he said. According to Kulkarni, India's growing network of free trade agreements and its position in global supply chains could help domestic manufacturers gain market share as companies diversify production beyond traditional manufacturing hubs.
