Vishal Kapoor on Investing Smart, Avoiding Delays, and Finding Financial Freedom. Only on The Simple Hai!

The Simple Hai! show completed its 50th episode with a special conversation between senior finance journalist Vivek Law and Vishal Kapoor, CEO of Bandhan AMC. The timing was symbolic, as Bandhan AMC also marked its 25th anniversary. Kapoor reflected on his 30 years in financial services, sharing lessons on how India’s economic progress has shaped investor behaviour.

From Scarcity Thinking to Adequacy Thinking

Looking back at the mid-1990s, Kapoor recalled that the mutual fund industry was still in its infancy. India was in the early stages of reforms, and investors were cautious, focusing on safety. With limited income levels, risks were avoided at all costs.

Today, with per capita GDP nearly 10 times higher than 25 years ago, investors have shifted towards “adequacy thinking”. This change allows them to explore more opportunities and take calculated risks.

The Challenge of Holding Investments

When Law raised concerns about SIPs stopping during market corrections, Kapoor acknowledged that challenges remain, but maturity among investors has improved. Unlike 15–16 years ago, recent market volatility has had only a mild impact on SIP flows.

Kapoor attributed this to India’s economic growth and the awareness promoted by regulators, the media, and digital content. However, he warned that the real challenge is the short holding period. Nearly half of equity investors exit within 2–3 years, despite expert advice to exercise long-term patience.

He added, “In chasing returns, we end up compounding the issue. Excessive activity destroys returns.” Holding a quality fund for 20–25 years, he said, would deliver far better outcomes than constant switching.

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Overcoming the Procrastination Trap

Law also observed that many people are careful about spending but careless about investing, often buying high and selling low. Kapoor explained that this stems from the belief that a substantial amount is required to start investing.

He reminded viewers that even ₹50 is enough to start. Waiting for tips or the “right time” only delays progress and leads to missed years of compounding. His advice was simple: “Start early, don’t procrastinate.”

The Power of SWP and Enjoying Wealth

Discussing Bandhan’s “Salary Wala Plan”, Kapoor described the Systematic Withdrawal Plan (SWP) as a powerful feature that lets investors withdraw regularly while their remaining corpus continues to grow.

“Investing is not only about sacrifices; it is also about financial freedom,” he stressed. A substantial corpus should bring relief, confidence, and joy. SWP offers a flexible and tax-efficient way to replace salary, especially useful in early retirement, job loss, or entrepreneurship.

When Law noted that many elderly investors become insecure despite their wealth, Kapoor explained that SWP assures them their corpus can sustain them for 120–130 years, giving them the confidence to live freely and spend happily.

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Vishal Kapoor’s Journey and Beliefs

Kapoor also spoke about his personal journey. He never planned to join the mutual fund industry but was recruited while working on an MBA project at IIM Ahmedabad. This early opportunity enabled him to help build a mutual fund house from the ground up, which he described as a “blessing in a sunrise industry.”

He shared his belief in “retiring from work, not from life.” With proper planning, he suggested that individuals could build a corpus by age 40, utilise SWP as a source of income, and then pursue meaningful passions without financial worries.

Celebrating a Special Episode: Key Lessons from the Conversation

The 50th episode of The Simple Hai! captured three decades of transformation in India’s mutual fund industry. Some of the biggest takeaways include:

• Rising incomes and awareness have made investors more mature.
• Short holding periods remain a key challenge for wealth creation.
• Start small and early, even with ₹50, to avoid missing out on compounding interest over the years.
• Avoid market timing and excessive switching, as patience pays off.
• SWP can provide income, security, and joy, turning wealth into freedom.