Markets Love Patience, Not Fear: Kalpen Parekh’s Wealth Creation Secrets on The Simple Hai Show

The Simple Hai Show, hosted by Vivek Law, is your go-to place for understanding money matters without the jargon. With over 30 years in financial journalism, Vivek talks to successful people and industry leaders to bring you real stories and tips on personal finance, investments, and retirement planning. In this episode, he sits down with Kalpen Parekh, the big boss of DSP Mutual Fund, to uncover the secrets of wealth creation in a way anyone can understand.

Why Panic Hurts Your Investments?

Kalpen starts with a hard truth: most people lose money in the market because they let fear take over. “Instinctive investing is bad investing,” he tells Vivek. When prices go up, people rush to buy, thinking they’ll miss out. When prices drop, they sell in a panic. But that’s the opposite of what smart investing needs! Kalpen shares a shocking fact—when markets fall, many investors stop their SIPs (Systematic Investment Plans). Data shows that SIP stoppage ratios even crossed 100 in weak markets. This means people are giving up on their investments when they should hold on the most.

Your Brain Is Wired Against Investing

Kalpen explains why staying calm in markets is so tough. He says our brains are built for survival, not for investing. “Our ancestors ran from danger to survive. But in markets, doing nothing often gives you the best rewards,” he laughs. This goes against our instincts, and it’s like fighting evolution! People also think that good times will last forever or that bad times will only happen to others. Kalpen says the real challenge is to change this mindset and stop expecting markets to move in a straight line. Markets are up and down, but our thinking needs to stay steady.

Three Things You Can Control

So, what can you do as an investor? Kalpen keeps it simple. He says there are only three things in your hands: how much money you save, where you invest it, and how long you keep it there. Everything else, like market ups and downs, returns, or government policies, is out of your control. Focus on saving regularly, picking the right place for your money, and letting it grow over time. That’s the secret to building wealth without stress.

Kalpen Parekh’s Journey: From Engineer to Finance Leader

Kalpen’s own story is inspiring. He studied engineering but decided it wasn’t for him. In the late 1990s, when everyone was doing MBAS, he went to Mumbai for his MBA and landed a job at L&T Finance in money markets. He says his success came from luck and learning from amazing people around him—bosses, colleagues, and even juniors. One boss gave him golden advice early on: “Grow your EPS, and let the market decide your PE.” Simply put, focus on being valuable, and the world will reward you. That’s exactly what Kalpen did, and today, he’s leading DSP Mutual Fund with 27 years of experience.

Why Most Investors Miss Out on Wealth

Kalpen Parekh shares a surprising example of how people miss out on big gains. He talks about a mutual fund launched in 1997 that grew its value over 100 times in 28 years. That’s huge! But guess what? Out of 7–8 lakh investors, only 23 stayed invested for the full 28 years. “Investing should be like a marriage, not a flirtation,” Kalpen tells Vivek with a smile. Most people leave when things get tough and come back when it feels safe again. That’s why they don’t see the big returns. Kalpen also warns that even though India is great for equity investing, thanks to its democratic and entrepreneurial spirit, high returns aren’t guaranteed. He points to Japan, where long-term equity returns have been almost zero for decades.

Timing Matters More Than You Think

Another big mistake? Chasing what’s already done well. Kalpen Parekh says, “A good fund bought at the wrong price can still be a bad investment. But a bad asset class bought at the right price can turn out great.” Timing is key. You might lose money if you jump into an asset class after it’s already gone up a lot. Instead, look for opportunities when prices are low, like after a big market correction. That’s when you can get the best deals for your money.

Also Read: The Simple Hai! Show with Vivek Law Brings Financial Wisdom from Industry Experts!

Multi-Asset Funds: Your Safety Net

To help investors stay on track, Kalpen suggests multi-asset allocation funds, especially for those who don’t have a financial advisor. These funds spread your money across equity, bonds, and gold, so you get growth and safety simultaneously. He calls gold a “magical joker” because it often does well when equities don’t. Multi-asset funds might not give the highest returns in a single year, but they’re steady, which helps you stay invested longer. Kalpen shares a simple rule from his 27 years of experience: Use multi-asset funds for discipline in inexpensive or bullish markets. Put your money in equities for bigger gains after big corrections in cheap markets.

It’s All About Behaviour, Not Just Strategy

Kalpen Parekh believes becoming a good investor is more about your behaviour than your strategy. He compares investing to other jobs: you wouldn’t take medical advice from a friend or Google, right? So why invest without expert help if you’re not sure? Multi-asset funds are a great starting point for those who want to do it themselves because they handle your discipline. Ultimately, Kalpen says wealth comes from running a successful business or owning one through investments. Investing is simpler for most people, but you must stick with it. “It’s not a knowledge game,” he says. “It’s a behaviour game.”

Finding Joy in the Journey

Even after 27 years in finance, Kalpen Parekh still loves his work. “It’s exciting, it’s meaningful, and it helps people solve real money problems,” he tells Vivek. For him, it doesn’t feel like work; it feels like life. His passion reminds us that good investing isn’t just about money; it’s about building a secure future while enjoying the process.

A Podcast That Makes Money Simple

Simple Hai is all about making tricky financial topics easy to understand. Hosted by Vivek Law, who has over 30 years of experience in financial journalism, the podcast covers everything from personal finance to investments and retirement planning. They bring successful people and industry experts to share practical tips and real-life stories, helping you manage your money better and make smarter choices. Subscribe to The Simple Hai Show today and start your journey to financial freedom!

Disclaimer: This content is a repost of information originally shared on a different platform. Market investments are subject to risks. The Reelstars is not responsible for any financial decisions or outcomes resulting from this information. Please consult a financial advisor before making investment choices.