Cut the noise, back conviction: Madhusudan Kela on investing through volatility

The past few days have packed in more action than many months combined — a Union Budget, a major India-US agreement, sharp swings in gold and silver, and turbulence in equities. The question to ask is whether investors should track every development or simply tune out the noise.

Market Veteran, Madhusudan Kela from 35 years experience in the market feels investors should only focus on wealth creation and ignore the noise.

“Thirty-five years of my experience, I have always put the blinders and focused on what truly matters from a wealth creation perspective,” he said, adding that “this noise is what creates opportunity.”

For Kela, volatility is not a threat but an ally. “Volatility is my biggest friend. If there is no volatility, where will I get the opportunity?”

He argues that differentiated returns rarely come from following the crowd. “You rarely make money if you are with the crowd,” he said, recalling how bullish calls on silver today contrast sharply with the silence when prices were far lower. “You would have been a loner at that time.”

In a lighter moment, when asked what he told his maid — who predicted silver would hit ₹10 lakh — Kela laughed: “Honestly speaking, when she told me, I felt like selling all the silver which we have in the house.”Betting on the JockeyLooking back at decades of cycles, reforms and crises, Kela believes the enduring lesson lies in Indian entrepreneurship.“The biggest thing for me has been the real entrepreneurship of Indians,” he said, pointing to their “resilience, perseverance and determination.”

Despite policy shocks and global disruptions, certain companies have multiplied investor wealth many times over. According to Kela, the key is identifying the right leadership. “Am I able to really identify a jockey… who will not get distracted? If you find that, that is the real winning idea.”

He contrasted wealth creators with habitual critics. “Real entrepreneurship is not about a blame game. It is about truly believing in your own self and pursuing what you believe.”

Retail: The Real HeroesKela has seen the equity market evolve from a “satta-driven market” to one where “at least 13 crore people in India” see equities as a serious long-term asset class.

The power of compounding, he stressed, remains underappreciated. “A small amount of saving invested over a long period of time can actually generate disproportionate wealth,” he said, citing how disciplined monthly investing at steady returns can build enormous wealth over decades. “That is the real power of belief in investing.”

Unless a severe “black swan” event shakes confidence, Kela believes domestic participation will only deepen. “This faith is only going to get built up,” he said, regardless of whether foreign investors are buying or selling.

In a market filled with headlines and hyperactivity, Kela’s message is to block out the noise, trust conviction, and let volatility work in your favour.