Connect with us

Podcast

Navigating India’s Mutual Fund Growth: Insights from Bajaj Finserv Asset Management CEO Ganesh Mohan

Published

on

Navigating India's Mutual Fund Growth: Insights from Bajaj Finserv Asset Management CEO Ganesh Mohan

In an episode of the Simple Hai! podcast hosted by veteran finance journalist Vivek Law, Ganesh Mohan, CEO of Bajaj Finserv Asset Management, shared candid insights into his personal journey, investment philosophy, and vision for the Indian mutual fund industry. Drawing from nearly two decades in global consulting and his current role leading a rapidly growing asset management company, Mohan discussed how trekking taught him life lessons applicable to investing and why he believes India’s mutual fund sector is poised for explosive growth.

A Journey Rooted in Humble Beginnings

Ganesh Mohan traced his upbringing to his family’s forces background. His father served in the Army, while his mother was a school teacher. This unique combination gave him access to quality education and good facilities for sports, but with limited financial resources. He credited this upbringing for instilling humility and a grounded perspective. Mohan emphasized that such an environment taught him to appreciate simplicity and focus on lifelong learning—values that continued to guide his career and leadership style.

Lessons from Trekking: One Step at a Time

Trekking, according to Mohan, was more than a hobby, it was a metaphor for life and investing. He described the rhythm of climbing a mountain, starting at a faster pace and gradually adjusting to a steady tempo. Being surrounded by nature in calm and humble settings made him realize how small humans are in the larger scheme of things. This immersion allowed him to think clearly and creatively, leading to some of his best ideas. Mohan drew parallels between trekking and investing: both require patience, focus, and perseverance.

Transitioning from Consulting to Asset Management

When asked about his shift from a global consulting firm to India’s mutual fund industry, Mohan highlighted the immense growth potential as the primary motivation. He estimated the mutual fund sector would grow at a minimum of 20-25% annually over the next decade and beyond. Despite 5 to 5.5 crore investors currently, he argued there should ideally be 25 to 30 crore investors considering the widespread fixed deposit holders with significant capital. Having worked with global asset managers, Mohan saw an opportunity to introduce international best practices, especially in behavioral finance, to India’s relatively young mutual fund ecosystem.

The Power of Behavioral Finance: A Differentiator

Bajaj Finserv Asset Management’s rapid growth, accumulating nearly Rs 20,000 crore assets under management (AUM), was driven by a focus on investment innovation. Mohan identified behavioral finance as a critical, yet underexplored area in India. Unlike traditional economics, which assumes rational market participants, behavioral finance acknowledges human emotions and biases that influence investment decisions. Mohan explained how both investors and fund managers are prone to such biases, and his firm introduced tools and templates to minimize these effects. This behavioral finance approach has been a key differentiator, helping them navigate market cycles and capture opportunities effectively.

The Untapped Potential of India’s Mutual Fund Industry

Despite the impressive rise to nearly 5 crore unique investors and Rs 70 lakh crore AUM, Mohan emphasized the journey to universal investing is far from over. India has over 50 crore Aadhaar-enabled PAN card holders, indicating the mutual fund market could potentially expand tenfold. He described mutual funds as a “beautiful, well-regulated, transparent, and low-cost” wealth creation tool but pointed out a glaring gap in distribution. With only about 80,000 active mutual fund distributors compared to over 30 lakh life insurance agents, distribution remains a major bottleneck to growth.

Turning Savers Into Investors

One of the biggest challenges Mohan identified was encouraging Indians to move beyond traditional savings accounts, where nearly Rs 20 lakh crore sits earning low returns of 3-3.5%, often below inflation. He highlighted the launch of “Savings Plus,” a facility leveraging the Account Aggregator mechanism to analyze surplus balances and suggest deploying these funds into liquid or overnight mutual funds for better returns. According to Mohan, this shift could save India roughly Rs 800 crore annually in lost returns, equivalent to around $10 billion—a figure comparable to foreign institutional investors’ recent market withdrawals. Addressing this inefficiency could be a game-changer for India’s wealth creation.

Changing Mindsets and Expanding Distribution

Mohan noted two common reasons small investors hesitate to invest in mutual funds: a misconception that mutual funds are only for equity exposure and a conservative mindset to keep money idle in savings accounts for emergencies. He advocated educating investors about debt mutual funds and liquid funds, which offer liquidity and better returns. Additionally, he stressed the need to increase and support distributors with incentives, including reducing systematic investment plan (SIP) ticket sizes to as low as Rs 250, a measure currently under SEBI consideration. The goal is to democratize mutual fund investing, making it accessible and affordable for all Indians, not just the wealthy.

Navigating Market Corrections with Confidence

Reflecting on recent market corrections, Mohan observed that many investors who joined post-COVID had not experienced significant downturns until recently. Yet, despite a 10,000-point fall from market peaks, investor flows remained resilient. He suggested that such corrections should be seen as entry points for net buyers rather than triggers to exit. Mohan encouraged advisors to guide investors through volatility by expanding allocations during market dips, reinforcing the need for strong advisor support to help investors avoid emotional decision-making.

Looking Ahead: A Cautious but Optimistic Outlook

Using a Formula 1 racing analogy, Mohan described the last two years as a “straight section” where growth accelerated. He predicted the near future would be a “curve,” demanding caution due to international uncertainties like geopolitical tensions and changing trade routes. While domestic economic issues appeared manageable, global factors would contribute to market volatility in early 2025. He believed clarity would emerge in the latter half of the year, enabling markets to find their direction.

Advice for New Investors

For those starting without advisors, Mohan recommended aligning investments with time horizons. Short-term needs (3-6 months) should avoid equity; medium-term goals (2-3 years) suit debt funds; and long-term investments (3+ years) can include equity funds. He advised beginners to start with index funds for simplicity and diversification, gradually expanding to multi-cap and flexi-cap funds as comfort and understanding grow. He likened this progression to building a balanced meal, adding specialized “ingredients” like sector or thematic funds over time.

The Role of Advisors: “Advisor Alpha”

Mohan highlighted a persistent gap between mutual fund returns and investor returns often 2.5-5% annually, caused by investor behavior such as panic selling and stopping SIPs during downturns. He coined the term “Advisor Alpha” to describe how skilled advisors act like Sherpas, guiding investors safely to their financial goals by helping them stay invested and avoid costly mistakes.

A Personal Note: Music and Discipline

Beyond finance, Mohan shared his passion for classical music, learning Carnatic and Hindustani styles from his grandmother, a Carnatic violinist. Although his role as CEO limits practice time, he often uses travel moments for music, reflecting his belief in balancing work and personal interests.

Ganesh Mohan’s insights reveal not only the promising future of India’s mutual fund industry but also the critical role of behavioral understanding, distribution innovation, and investor education in unlocking India’s full wealth creation potential.

Continue Reading

Podcast

Gold Loans, MSME Credit and Digital Lending: Rakesh Singh on India’s Changing Borrowing Habits

Published

on

Gold Loans, MSME Credit and Digital Lending: Rakesh Singh on India’s Changing Borrowing Habits

India’s lending landscape is evolving as technology makes credit more accessible and businesses look for faster ways to raise funds. From households using gold as collateral to small businesses seeking formal credit, borrowing is becoming an important part of how individuals and enterprises manage their financial needs.

In a conversation with Vivek Law on The Simple Hai! Show, Rakesh Singh, Executive Director and CEO (NBFC) at Aditya Birla Capital, discussed the growth of gold loans, the credit gap faced by micro, small and medium enterprises (MSMEs), the role of digital platforms in lending, and why responsible borrowing must remain a priority.

Gold Loans: Putting Household Savings to Productive Use

Gold has traditionally been an important form of savings for Indian households. Singh noted that Indian families collectively hold an estimated $5 trillion worth of gold, presenting a significant opportunity for the gold loan market.

According to Singh, the gold loan industry has grown considerably over the past two to three years, partly because rising gold prices have increased the value of the collateral borrowers can offer. He cited an industry size of around ₹19 lakh crore, with NBFCs accounting for approximately ₹4 lakh crore and banks making up the remainder.

Gold loans can help people access funds without selling family jewellery. Singh explained that borrowers often use these loans to invest in their businesses or pay for their children’s education, making them a source of funds for specific financial needs rather than everyday consumption.

He also highlighted the potential in semi-urban and rural areas, as well as Tier 3 and Tier 4 markets, where access to such lending products can expand further.

Trust Is Key to the Gold Loan Business

Borrowing against gold involves more than a financial transaction. For many families, jewellery carries emotional and generational value, making trust an essential part of the process.

Singh said established brands can help customers feel more confident about pledging their gold. Transparency, responsible handling of jewellery and a customer-first approach are important to building that confidence.

He also pointed to a geographical shift in the market. While gold lending was previously concentrated in southern states, Singh said growth is increasingly visible in northern, eastern and central India, including markets such as Delhi-NCR, Uttar Pradesh and Rajasthan.

For Aditya Birla Capital, entering this segment is an opportunity to expand its lending presence across the country while focusing on customer trust and responsible growth.

MSMEs Continue to Face a Credit Gap

Access to formal credit remains a challenge for many small businesses. Singh observed that some MSMEs continue to borrow from friends, family or local sources, sometimes at significantly higher rates, because they cannot easily access suitable formal financing.

He said banks, NBFCs and fintech companies each have a role to play in addressing this gap. Rather than simply competing with one another, these institutions need to reach different customer segments and offer products suited to their requirements.

Speed is another important factor. For a small business, delays in accessing funds can affect day-to-day operations and growth plans. Lenders therefore need to combine appropriate credit assessment with efficient processes.

Singh also shared that approximately 57–58% of Aditya Birla Capital’s loan book, which he referred to as around ₹1.70 lakh crore during the discussion, was directed towards MSMEs.

How Digital Platforms Are Changing Lending

Digital infrastructure is making it easier for lenders to assess small businesses that may previously have had limited access to formal credit.

Singh highlighted the role of digital payments, Aadhaar-based verification, PAN linkages, GST records and credit bureau information in helping lenders understand customers and their financial activity. As more businesses use digital payment systems, lenders can gain a clearer picture of their transactions and banking behaviour.

Aditya Birla Capital developed its Udyog Plus digital platform to serve MSMEs. Singh said the platform had close to 2.4 million registered businesses at the time of the conversation.

Through digital processes, some smaller loans can be assessed, approved and disbursed within minutes. Larger or more complex applications may still require intervention from branches and credit managers.

Digital platforms can also help businesses access services beyond financing, including support related to accounting and human resources.

Digital Lending Must Be Matched With Responsible Borrowing

Technology has made it easier for customers to access credit, including through digital platforms and financing options offered during online purchases. However, Singh cautioned that easier access to loans also brings risks.

When customers take multiple loans from different lenders, their overall debt burden can rise. Singh stressed that lenders need to monitor a borrower’s leverage not just when approving a loan, but also after the money has been disbursed.

For borrowers, understanding repayment capacity is equally important. People should assess how much they can repay, when their income is likely to arrive and whether the repayment schedule suits their financial circumstances. This can be particularly important for those with irregular or seasonal earnings.

Singh also emphasised the importance of awareness around credit scores and repayment discipline. Delayed payments can affect a borrower’s credit record and future access to loans.

The Future of Lending Depends on Access and Awareness

India’s growing economy, expanding digital infrastructure and changing borrowing needs are creating opportunities for lenders. Gold loans can help households unlock funds against an existing asset, while better access to formal credit can support small businesses.

But greater access alone is not enough. As Singh explained, lenders must understand the customer segments they serve, manage risks carefully and ensure that credit reaches borrowers whose needs and repayment capacity align with the product.

For borrowers, the message is equally clear: a loan should serve a financial purpose, and taking one should always involve a clear understanding of its cost and repayment obligations.

Continue Reading

Podcast

Simple Hai! @ 100: Celebrating a Milestone in Making Finance Simple

Published

on

Simple Hai! @ 100: Celebrating a Milestone in Making Finance Simple

From financial awareness to financial confidence, Simple Hai! marks 100 episodes with a celebration of conversations, learning and the people behind the journey. A hundred episodes is more than a number. For Simple Hai!, it represents years of conversations aimed at making money easier to understand. The milestone was celebrated with the Simple Hai! @ 100 event, bringing together the people who have shaped, supported and powered the show. The celebration reflected on the journey of building a financial education platform around one simple idea: finance does not have to feel complicated.

From Awareness To Confidence

Over its journey, Simple Hai! has explored subjects ranging from investing and wealth creation to retirement planning and everyday money decisions.

The show’s conversations have also reflected how India’s financial landscape has changed.

Mutual funds, investing and personal finance have become more accessible to younger audiences. Digital platforms have further changed how people learn about money.

The show has reached audiences beyond India’s major metros, with viewers across more than 15 countries.

It has also crossed 38 million impressions and nearly 5 million views, reflecting the growing demand for accessible financial education.

The People Behind Simple Hai!

The celebration also recognised the team working behind the camera.

Co-founders Aparna Joshi, Harish Patil and Deepak Karna joined Law during the event, highlighting the collaborative effort behind the platform.

The wider OneNative Studio team was also brought on stage as part of the celebration.

That moment reinforced an important part of the show’s journey.

A finance platform may have a host at the centre, but building 100 episodes requires researchers, producers, editors, designers and everyone working behind the scenes.

A Conversation With Ashishkumar Chauhan

Ashishkumar Chauhan, MD and CEO of the National Stock Exchange, also joined the celebrations through a conversation and message recognising the milestone.

He highlighted the role of financial media in making investment conversations more accessible.

The discussion also looked at how Indian investors have changed over the years.

Law recalled a time when mutual funds were far less familiar to ordinary investors. Today, financial products and investment information are significantly more accessible.

The challenge has consequently shifted from access to understanding.

The Philosophy Behind The Show

One recurring idea from the celebration was the importance of knowledge.

A story from India’s financial markets captured that philosophy particularly well.

Veteran brokers once suggested that while people may worship Lakshmi, the goddess of wealth, they should remember Saraswati, the goddess of knowledge, every day.

For Simple Hai!, that idea fits the journey.

Financial confidence cannot come only from having access to products. It also requires knowledge, discipline and the confidence to ask questions.

What’s Next For Simple Hai!?

Reaching 100 episodes is being treated as a milestone rather than a finish line.

The platform plans to explore artificial intelligence and other technologies to make financial education more accessible.

The newly launched Simple Hai! website will also bring together its podcasts and financial education content.

As the show enters its next phase, its central promise remains unchanged.

Make finance simpler. Make financial conversations more accessible. And help more Indians become confident with their money.

For Simple Hai!, 100 episodes are therefore less about looking back and more about asking what comes next.

Continue Reading

Podcast

Digital Gold Can Unlock India’s $5 Trillion Opportunity, Mahendra Luniya

Published

on

Digital Gold Can Unlock India's $5 Trillion Opportunity, Mahendra Luniya

Gold has long been India’s preferred store of wealth. It is bought during festivals, gifted at weddings and passed down through generations. But while Indian households continue to accumulate the precious metal, much of it remains locked away in lockers, generating little economic value.

According to Mahendra Luniya, Founder Chairman, Vighnaharta Gold Ltd., this vast stockpile of household gold represents one of India’s biggest untapped economic opportunities. Speaking on the Simple Hai! podcast hosted by veteran business journalist Vivek Law, Luniya argued that digitising gold ownership and bringing idle gold into the formal financial system could unlock liquidity, reduce import dependence and reshape how Indians invest in the precious metal.

Gold Goes Digital

Luniya compared the evolution of gold ownership to the transformation witnessed in equity markets and payments over the last two decades.

“Shares moved from paper certificates to demat accounts. Cash moved from wallets to UPI. Gold is now following the same path,” he said.

With prices touching around ₹1.5 lakh per 10 grams, purchasing physical gold has become increasingly expensive for many households. Digital platforms, however, allow investors to start with significantly smaller amounts.

“You can now buy gold for as little as ₹150,” Luniya said, adding that digital ownership makes regular investing possible, much like a systematic investment plan (SIP). Instead of waiting to accumulate enough money to buy jewellery or coins, investors can gradually build their gold holdings over time.

From Investment to Jewellery

While digital gold is often viewed as a substitute for physical ownership, Luniya believes it actually complements traditional buying habits.

He explained that investors can accumulate gold digitally over several years and eventually convert those holdings into jewellery whenever required, particularly for weddings or family occasions.

A key innovation enabling this transition is the Electronic Gold Receipt (EGR), an exchange-traded instrument backed by physical gold stored in regulated vaults. According to Luniya, EGRs could eventually allow investors to transfer gold directly from their demat account to a jeweller, paying only the making charges or any additional quantity required.

“This makes gold accumulation far more efficient while still allowing families to eventually own physical jewellery,” he said.

Trust Through Standardisation

Luniya also highlighted the impact of mandatory hallmarking in improving consumer confidence.

Earlier, buyers often had little certainty about the purity of jewellery, with many discovering years later that ornaments sold as 22-carat gold were of lower quality. Today, BIS hallmarking and digital verification have standardised quality, making transactions significantly more transparent.

He believes this increased trust provides the foundation for wider adoption of digital gold ownership.

Unlocking a Sleeping Asset

According to Luniya, India’s privately held gold is effectively a “sleeping asset.”

While households continue buying gold every year, the country also imports hundreds of tonnes annually, placing pressure on foreign exchange reserves.

“If even a small portion of the gold already lying in Indian homes becomes financially productive, it can release enormous liquidity into the economy,” he said.

That liquidity, he argued, could support businesses, improve access to credit and reduce dependence on fresh imports.

Rather than encouraging people to stop buying gold, Luniya advocates changing how it is accumulated and utilised.

Lessons From History

During the discussion, Luniya referred to historical examples to underline gold’s strategic importance.

He cited the United States’ gold policies during the Great Depression and India’s decision to pledge gold reserves during the 1991 balance-of-payments crisis as examples of how gold has served as a critical financial asset during periods of economic stress.

His broader point was that gold should not merely remain locked away but should be capable of supporting economic activity whenever required.

Why Gold Remains Relevant

The conversation also touched upon the resurgence of gold globally.

Luniya noted that central banks across the world have increased their gold purchases amid geopolitical tensions, rising sovereign debt and efforts to diversify reserves beyond the US dollar.

Against this backdrop, he believes India’s own household gold reserves can play a far greater role in strengthening the country’s financial resilience.

Among the various investment avenues available today—including Gold ETFs, digital gold and other market-linked products—he identified Electronic Gold Receipts as one of the most promising developments because they combine the security of physical gold with the convenience of electronic ownership.

The Road Ahead

Luniya believes younger investors are already leading the shift towards digital assets.

Unlike previous generations, who primarily associated gold with jewellery, today’s investors are increasingly comfortable owning financial assets electronically while retaining the flexibility to convert them into physical form whenever required.

For him, the future of gold lies not in replacing tradition but in modernising it.

Families will continue buying jewellery for emotional and cultural reasons, but the process of saving and investing in gold is likely to become increasingly digital. If that transition gathers pace, Luniya believes India’s vast household gold reserves could evolve from being a passive store of wealth into a productive financial asset—one that benefits not only individual investors but the broader economy as well.

Continue Reading

Trending