The Investor Behaviour Episode Financial Freedom Matters

The Simple Hai! show marked its 50th episode with a special conversation between Vivek Law and Vishal Kapoor, CEO of Bandhan AMC.

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Vishal Kapoor reflected on his 30 years in the financial services industry, marking the 25th anniversary of Bandhan AMC.

Kapoor explained how India's economic progress has shifted investor behaviour from "scarcity thinking" to "adequacy thinking." He stressed the importance of long-term investing and early financial discipline and reflected on three decades of change in India's mutual fund industry.

Law began by asking Kapoor about the state of the mutual fund industry when he entered the sector in the mid-1990s.

Kapoor said that India was still in the early stages of economic reform, facing "birth banks related challenges." At that time, investors were more safety-conscious and less risk-taking, as they couldn't afford to take on risks.

Comparing the past with the present, Kapoor noted that today's investors, with a per capita GDP nearly 10 times higher than 25 years ago, can afford to take on greater risks.

Challenges of Holding Periods When Law raised the issue of SIPs often stopping during market corrections, Kapoor acknowledged that although challenges remain, investors today show greater maturity.

He said that in the last four to five years, market volatility had only a "mild" impact on SIP flows, unlike 15-16 years ago.