In an episode of Simple Hai!, Aashish Somaiyaa, CEO and Executive Director at WhiteOak Capital, likened mutual fund investing to a lifelong journey. Drawing from decades of experience, he told host, veteran journalist Vivek Law, how mutual funds are not about one-off transactions. Instead, they build lasting relationships between investors, advisors, and market participants.
Mutual fund schemes, some of which date back to the 1990s, have weathered many market cycles. This, Somaiyaa pointed out, requires investors to stay on the journey and not jump off during downturns. Just like a train journey that spans decades, long-term wealth is only created by staying the course.
Markets Mirror Human Emotion
Somaiyaa offered a vivid metaphor, comparing the stock market to a roller coaster. At the peak, emotions run high—confidence, optimism, and euphoria. At the lows, fear, regret, and panic take over. He explained that just like a roller coaster ride, markets will rise again after they fall, but how one reacts during those lows defines long-term outcomes.
Referencing the panic of March 2020 and the euphoric sentiment by October 2021, Somaiyaa highlighted how emotional investing leads to poor decisions. “The market treats you the way you treat the market,” he said, urging investors to avoid speculative behavior and respect the long-term nature of wealth creation.
Young India: Poised to Be the Richest Generation
Somaiyaa expressed immense confidence in today’s youth, calling them India’s potentially “richest and luckiest” generation. With demographic advantage, increased access to financial tools, and a rapidly growing economy, young Indians are uniquely positioned to create long-term wealth.
He highlighted that India is entering its “Amrit Kaal”—a 20 to 25-year window of peak productivity. With better financial literacy, stronger institutions like SEBI, and improved market participation mechanisms, the current generation can benefit immensely—provided they stay invested.
Investing Is Not Gambling
A recurring theme throughout the conversation was the need for clarity between trading and investing. Somaiyaa criticized the trend of confusing stock market speculation with long-term investing, particularly in high-risk areas like F&O trading.
He noted how behavioral biases often lead investors to exit quality stocks early and hold on to underperformers, driven more by emotion than strategy. “People don’t decide if they’re traders or investors—the market tells them after they’ve made their mistakes,” he remarked.
Power of Compounding: A Personal Story
In a moving segment, Somaiyaa shared a deeply personal story about discovering his late father’s equity investments. After his father passed away in 1989, the family lived on modest means. More than a decade later, they discovered old share certificates of companies like Reliance and Hero Motors—investments that had grown significantly in value.
This real-life example underscored the life-changing power of long-term equity investing. It wasn’t just a story of financial growth, but also a reminder that wealth creation through equities is not just theory—it’s real and impactful.
The Importance of Scaling SIPs
Somaiyaa discussed a critical investing habit often overlooked—scaling up SIPs (Systematic Investment Plans) as income and lifestyle evolve. Comparing it to increasing weights at the gym, he explained that consistent but stagnant investing won’t help reach growing financial goals.
While SIPs are now widely understood and adopted, many investors forget to align contributions with their rising incomes. “Invest according to your ambition and earning capacity,” he advised, emphasizing the importance of adjusting financial strategies over time.
FIRE: A Modern Financial Mindset
Addressing the growing trend of FIRE (Financial Independence, Retire Early), Somaiyaa noted the optimism and confidence of young investors. While he appreciated their desire for flexibility and experiences over material goods, he cautioned that financial planning must account for increased life expectancy and inflation.
He acknowledged that younger generations may have multiple careers or “sub-careers,” but warned that early retirement without sufficient corpus could backfire. “The FIRE concept is valid,” he said, “but only if one has truly assessed the risks and planned accordingly.”
Entrepreneurship through Building Institutions
Somaiyaa also shared insights into his own professional journey—how he transitioned from established institutions to help build new ventures like WhiteOak Capital. He identified as a “professional entrepreneur,” someone who builds institutions and systems even if not risking personal capital.
Joining WhiteOak’s founder Prashant Khemka, Somaiyaa saw the opportunity to bring long-term performance consistency to Indian investors. Their mission: to avoid the typical “top one year, bottom the next” fund performance cycle and offer reliable, above-average returns.
The Final Note: Balance and Passion
Despite a demanding schedule, Somaiyaa said he found time to travel, read, and indulge his love for classic Hindi music. Quoting Jagjit Singh and discussing Kishore Kumar and Mukesh, he revealed a poetic side that balances his analytical career.
As Vivek Law noted, Somaiyaa is not just a financial expert but a storyteller, educator, and passionate ambassador for India’s equity journey. His message was simple yet powerful—invest with discipline, respect the market, and let compounding do its magic.
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