Deputy Managing Director of SBI Mutual Fund, DP Singh, shared his insights about his extraordinary journey in the mutual fund industry, India’s SIP culture, and the changing investment mindset of retail investors while chatting with veteran finance journalist on an episode of Simple Hai! From humble beginnings to leading an AUM of ₹10 lakh crore, Dr Singh’s perspective offered clarity to both novice and seasoned investors.
From 5 Lakh to 10 Lakh Crore
Reflecting on SBI Mutual Fund’s exponential growth, Singh attributed the jump from ₹5 lakh crore to ₹10 lakh crore AUM to collective efforts across the financial ecosystem and the rise of SIPs (Systematic Investment Plans). He recalled how India’s SIP model had become a global success story, even attracting interest from Japanese investors.
Singh revealed that in a recent month, Japanese retail investors had invested more into Indian mutual funds than domestic investors—a testament to the international trust in India’s market stability and growth potential.
Performance Over Returns
Singh emphasized the distinction between performance and returns. While returns could be easily quantified, performance involved prudent decision-making, long-term thinking, and managing investor risk. “We were happy delivering consistent, moderate returns rather than chasing risky short-term highs,” he explained to Law.
He added that while some funds might underperform benchmarks, the real success lay in safeguarding investors’ capital and aligning investment choices with deep research.
Thematic Funds and the IPO Buzz
As thematic mutual funds and New Fund Offers (NFOs) gained popularity, Singh remained confident about their potential but cautioned against superficial investments. SBI Mutual Fund’s thematic products—such as its Energy Opportunities Fund—were the result of extensive research and sectoral analysis, with Singh and his team vetting hundreds of companies before shortlisting a select few.
However, he warned against investing in any IPO simply because it was new. “The goal should be a good company at a fair value,” he said, stressing that depth and diligence mattered more than trend-following.
Youth-Led Investing
Singh highlighted a remarkable change in India’s investment culture—the rise of young investors, especially from smaller towns. Unlike the past, where parents managed finances, today’s youth were leading investment decisions, often influencing their entire family’s financial choices.
He cited fintech data that revealed large accounts now belonged to relatives of young users who had onboarded their families into the investing world. Smartphones and digital apps had made mutual fund investing more accessible and user-friendly than ever before.
The Need for Investor Education
While Singh celebrated the democratization of investing, he also voiced concern over short-term investing behaviors fueled by convenience. He observed a growing trend of people using mutual funds like trading tools—investing for just three to six months without long-term plans.
“We sold too much liquidity,” he admitted. Singh believed it was now time to emphasize illiquidity and long-term investing for true wealth creation. He reiterated that mutual funds were right for everyone, but only if aligned with clear goals, time horizons, and disciplined planning.
Banks vs Mutual Funds
Addressing the popular belief that mutual funds were hurting bank deposits, Singh debunked the notion. As a former banker, he explained that these were merely internal financial shifts. “Money that left fixed deposits might end up in current accounts, but it stayed within the banking system,” he clarified.
He also pointed out that if mutual funds truly undercut bank interests, institutions like SBI wouldn’t actively distribute them.
A Life of Destiny, Discipline, and Dharma
Interestingly, Singh’s foray into the mutual fund world wasn’t planned. He had been deputed from the State Bank of India into SBI Mutual Fund—a move he initially resisted. But over time, he discovered deep purpose in the industry. “Helping people build wealth felt noble,” he said, reflecting on a career built on guidance, trust, and ethical investing.
When asked about his high energy levels, Singh credited his simple lifestyle, professional network, and deep connections from his early banking days. “Stress is always there, but like compounding, life rewards consistency,” he shared.
Final Words
For India’s youth, Singh left a powerful message: “Think big. Believe in yourself. Don’t hesitate to take help from others.” He believed success was a shared journey—whether in families, workplaces, or investing. By working together and setting ambitious goals, he believed that individuals could lead and inspire entire teams.
He encouraged young professionals to lead by example, ensuring that their values and actions were always in sync. “When you lead a team, you’re responsible for their growth too,” he said.
As the conversation drew to a close, it was clear that Singh’s impact went far beyond markets and numbers. His journey—from banker to mutual fund leader—offered valuable lessons in discipline, humility, and purpose-driven leadership. In a world often driven by hype and returns, his voice of reason stood out as a beacon for responsible investing.
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