In a recent episode of the Simple Hai! show, host Vivek Law spoke with Anthony Heredia, Managing Director and CEO of Mahindra Manulife Mutual Fund. With 30 years of experience in finance, Heredia shared insights on investor behaviour, market volatility and the importance of emotional discipline in investing.<\/p>\n\n\n\n
Heredia said Indian investors have become more mature over the past three decades, but fear during market downturns remains a natural human reaction. Investors may stop their Systematic Investment Plans or sell in panic when markets fall.<\/p>\n\n\n\n
He noted that even experienced professionals react emotionally during major market events. According to him, investor behaviour has improved considerably, moving from perhaps two or three decades ago to around six or seven today.<\/p>\n\n\n\n
One sign of this maturity is the continued strength of SIP inflows, which remain substantial even when markets become volatile. However, lump sum investors tend to become more cautious during corrections.<\/p>\n\n\n\n
Heredia believes social media has amplified market noise. In what he called an Insta world, exaggerated headlines attract more views and attention.<\/p>\n\n\n\n
Despite this noise, the continued flow of SIP investments suggests that investors are increasingly able to stay disciplined. He believes the challenge is not eliminating fear but learning how to prevent emotions from controlling financial decisions.<\/p>\n\n\n\n
According to Heredia, successful investing is less about intelligence and more about emotional control. Investors need the discipline to stay invested when markets become uncomfortable.<\/p>\n\n\n\n
He described investing as fundamentally boring. Finding a good business at a reasonable valuation and holding it for a long period can create wealth. The temptation to constantly trade or chase excitement, he warned, can damage long term returns.<\/p>\n\n\n\n
Heredia does not view the current environment as comparable to major disruptions such as the 2008 financial crisis or the Covid 19 crash.<\/p>\n\n\n\n
Instead, he sees the present situation as a series of events that could gradually become significant. Investors should therefore remain alert but should not allow fear to dictate their decisions.<\/p>\n\n\n\n
Heredia has maintained a positive view of manufacturing, particularly because of India’s long term industrial potential. He believes some exceptional companies could emerge from the sector over the next five to ten years.<\/p>\n\n\n\n
However, he also sees banking and financial services as attractive because of their relatively predictable earnings and valuations. He cautioned against taking an overly rigid sector approach because opportunities can emerge across different parts of the economy.<\/p>\n\n\n\n
For most investors, Heredia believes simplicity is enough. He highlighted Flexi Cap, Multi Cap and Multi Asset funds as categories that can provide diversification and flexibility without making portfolios unnecessarily complicated.<\/p>\n\n\n\n
His broader philosophy is that investors do not need a large number of products to build a meaningful portfolio.<\/p>\n\n\n\n
Heredia remains highly optimistic about India’s wealth creation potential over the next 20 to 25 years. He believes India’s transition from a developing economy towards a developed economy could create significant prosperity, similar to transformations seen earlier in countries such as Japan and South Korea.<\/p>\n\n\n\n
However, he cautioned investors against putting everything into equities. Fixed income and instruments such as REITs can also play important roles in creating a diversified portfolio.<\/p>\n\n\n\n
Heredia highlighted the difference between investment returns and investor returns. While fund managers generate investment returns, investors may earn less if they make emotional decisions at the wrong time.<\/p>\n\n\n\n
Financial advisors can therefore play an important role by helping investors maintain discipline, avoid panic and remain focused on long term goals.<\/p>\n\n\n\n
Heredia\u2019s message is ultimately about simplicity. Investors should avoid unnecessary complexity, control their emotions, diversify appropriately and remain focused on the long term.<\/p>\n\n\n\n
His philosophy reflects the central idea of Simple Hai: investing does not have to be complicated. The greater challenge is often controlling our own behaviour and staying disciplined through changing market conditions.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a recent episode of the Simple Hai! show, host Vivek Law spoke with Anthony Heredia, Managing Director and CEO of Mahindra Manulife Mutual Fund. With 30 years of experience in finance, Heredia shared insights on investor behaviour, market volatility and the importance of emotional discipline in investing. Why Do Investors Still Panic During Market […]<\/p>\n","protected":false},"author":6,"featured_media":396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcast"],"_links":{"self":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/comments?post=395"}],"version-history":[{"count":1,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/395\/revisions"}],"predecessor-version":[{"id":397,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/395\/revisions\/397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/media\/396"}],"wp:attachment":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/media?parent=395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/categories?post=395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/tags?post=395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}