Nilesh Shah Warns Against FOMO Investing: Why the Kotak AMC MD Says Never Chase 'Once-in-a-Lifetime' Bets in Public vs Private Markets

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (Kotak AMC), has a simple message for investors caught up in FOMO investing: do not chase. Speaking at a discussion on public vs private markets in Mumbai on 29 September 2026, he warned against rushing into any investment only because it is being pitched as a rare, once-in-a-lifetime chance.

His advice comes at a time when investors are surrounded by choices, from a busy IPO pipeline and private market deals to fast-rising themes, while the broader market is going through a sharp correction. That combination often tempts investors to take bets driven by fear of missing out rather than research.

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What Did Nilesh Shah Say About Chasing Investments?

Nilesh Shah said investors should not let urgency or market narratives override investment discipline. In his words, "You should never ever chase any investment" simply because the sell side, the brokers, bankers and distributors marketing a product, is calling it a once-in-a-lifetime opportunity.

He also argued that investors should not treat a missed opportunity as a permanent loss. Markets keep creating new opportunities, and an investor who stays patient and disciplined will usually find another good entry point. The key, according to Shah, is to look for sustainable growth, whether in public or private markets, rather than reacting to hype.

Public vs Private Markets: Where Is Wealth Creation Heading?

Shah's comments came during the third edition of Kotak Private's 'Take and Counter Take' discussion, titled around whether the future of wealth creation is shifting from public markets to private markets. He debated the question with Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management.

The two took different views on what investors should do after an asset bubble bursts. Ramnath focused on the value of access to private markets. Shah argued that public markets offer some of the best wealth creation opportunities right after a bubble, because listed-market investors tend to sell even at low prices, while private company promoters usually refuse to sell their businesses at a discount during a crisis.

Shah also noted that the line between public and private investing is blurring. Active public market fund managers are increasingly stepping in to push for good governance and prevent mistakes at listed companies, much like private equity investors do. He pointed to India's long history of informal private capital, where family members and close networks often funded businesses.

Point	Public Markets	Private Markets
Access	Open to all investors through stocks and mutual funds	Mostly for large or accredited investors
Liquidity	Can buy and sell daily	Money often locked in for years
Pricing	Transparent, market-driven	Negotiated, less frequent valuations
Post-bubble opportunity	Forced selling can create bargains, per Shah	Promoters may avoid selling at a discount

Despite their different views, both Shah and Ramnath agreed on one thing: investors should stop viewing public and private markets as an either-or choice and should diversify across asset classes instead.

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What Is FOMO Investing and Why Is It Risky?

FOMO investing means putting money into an asset mainly because others seem to be making money from it, not because of research or a clear plan. It usually shows up during rallies, hot IPOs or new themes, when prices have already risen sharply.

The risk is timing. Investors driven by FOMO often buy near peaks and panic when prices fall. Recent market moves show this clearly: some stocks have swung 20% or more in a single day on rumours, and several hot IPOs have seen sharp moves after listing. At the same time, the Nifty has just recorded its worst September since 2018, a reminder that markets do not rise in a straight line.

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How to Avoid FOMO Investing: Practical Lessons

Drawing on Nilesh Shah's advice, here are practical ways investors can stay disciplined:

• Start with goals: Decide what you are investing for and your time horizon before looking at any opportunity.
• Stick to asset allocation: Keep a set mix of equity, debt and other assets, and rebalance instead of chasing one theme.
• Question urgency: Be cautious whenever a product is sold as rare or time-limited. Genuine opportunities can wait for research.
• Check valuation: A great business bought at an extreme price can still be a poor investment.
• Invest regularly: SIPs spread purchases over time and reduce the urge to time the market.
• Diversify: As Shah and Ramnath agreed, spreading money across public and private assets reduces risk.

Why Nilesh Shah's Advice Matters Now

Nilesh Shah has led Kotak AMC since January 2015 and has long argued that experienced investors focus on quality while inexperienced ones chase momentum. With markets volatile, IPO activity high and private market products increasingly marketed to wealthy investors, his warning against FOMO investing is a timely reminder to slow down and think before investing.

Bottom Line

Nilesh Shah's message is clear: never chase an investment just because it is sold as a once-in-a-lifetime chance, and do not treat a missed opportunity as a permanent loss. Whether in public or private markets, patience, research and diversification matter more than speed. Consult a SEBI-registered advisor before making investment decisions.

Frequently Asked Questions on Nilesh Shah's FOMO Warning

What did Nilesh Shah say about chasing investments?

Ans. Kotak AMC MD Nilesh Shah said investors should never chase an investment just because the sell side calls it a once-in-a-lifetime opportunity. He urged patience and discipline, and said missing one investment should not be seen as an irreversible loss.

Where did Nilesh Shah make these comments?

Ans. Nilesh Shah spoke on 29 September 2026 at the third edition of Kotak Private's 'Take and Counter Take' discussion in Mumbai, on whether wealth creation is shifting from public markets to private markets, alongside Renuka Ramnath of Multiples Alternate Asset Management.

What is FOMO investing?

Ans. FOMO investing means buying an asset mainly because of the fear of missing out on gains others seem to be making, rather than because of research, valuation or fit with your goals. It often leads investors to buy near peaks.

What did Nilesh Shah say about public vs private markets?

Ans. Shah said the lines between public and private markets are blurring, with active public market fund managers increasingly pushing for better governance at listed companies. He argued that public markets offer strong opportunities after an asset bubble bursts.

Should investors choose public or private markets?

Ans. Both Nilesh Shah and Renuka Ramnath agreed that investors should not treat public and private markets as an either-or choice, and should instead diversify across asset classes based on their goals and risk appetite.

How can investors avoid FOMO while investing?

Ans. Investors can avoid FOMO by setting clear goals, sticking to an asset allocation, researching before buying, avoiding decisions based on urgency or hype, and investing regularly through SIPs instead of chasing the latest trend.

Who is Nilesh Shah?

Ans. Nilesh Shah is the Managing Director of Kotak Mahindra Asset Management Company, one of India's large mutual fund houses. He has led Kotak AMC since January 2015 and earlier served as chief investment officer at ICICI Prudential AMC.