Patience, Discipline, and SIPs: HDFC Securities’ CEO on Wealth Creation”

Dhiraj Relli, MD & CEO of HDFC Securities, joined Vivek Law on the Simple Hai! show to discuss retail investing trends, SIP discipline, fintech disruption, and why patience is key to long-term wealth creation.

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The conversation explored the evolution of Indian investor behaviour, the rise of retail participation in markets, the risks of speculation, the role of technology and fintech disruption, and the future of the broking industry.

Changing Investor Behaviour

Law began by asking Relli about the constant volatility in the stock markets, particularly during the recent global turmoil.

Relli averred that volatility had always been an inherent part of markets. What had changed over the past 25 years was investor perception. Earlier, volatility used to frighten retail participants. But over time, especially after crises like the Harshad Mehta scam, the 2008 financial meltdown, and the Covid-19 pandemic, investors had begun to view volatility as an opportunity rather than a threat.

He emphasised that the most significant shift had occurred over the last 5-6 years, when retail investors began to understand the importance of long-term participation. Many no longer exit the market in panic. Instead, they have learned to stay invested and even use dips to their advantage. Relli recalled how he had personally marketed Systematic Investment Plans (SIPs) as early as 1999 during the tech boom. Very few investors had stayed the course for 25 years, but SIPs had fundamentally changed the way people approach wealth creation. Today, SIP flows of over Rs. 27,000 crore every month are powering the markets, often offsetting foreign institutional selling.

Mutual Funds, SIPs and Retail Discipline