Nimesh Chandan, the CIO of Bajaj Finserv Mutual Fund and a behavioral finance expert with over 25 years of market insight, shares his wisdom on the podcast. He discusses why investors often fall into the trap of herd mentality, buying high and selling low. Nimesh highlights key emotional pitfalls like fear and greed that sabotage portfolios, emphasizing that patience trumps market timing. He encourages listeners to cultivate discipline to foster consistent wealth-building and navigate the emotional rollercoaster of investing.
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Nimesh's Early Career
Nimesh Chandan started as a tech analyst in 2000, right before the dot-com bubble burst.
This bear market taught him valuable investing lessons, unlike bull markets.
insights INSIGHT
Crowd Mentality
Crowds are often right about market trends but wrong about when those trends end.
They chase themes to high valuations, driven by narratives, and then panic sell when reality sets in.
insights INSIGHT
Behavioral Finance
Behavioral finance, gaining traction now, has always been important.
Temperament, as Benjamin Graham highlighted, is more important than knowledge in investing.
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In this book, Robert J. Shiller examines the forces that drive market volatility, including cultural, psychological, and structural factors. He discusses how events such as technological advancements and demographic changes can precipitate market bubbles, and how these bubbles are reinforced by media coverage and 'new era' economic thinking. The book also explores psychological anchors and herd behavior, as well as attempts to rationalize market exuberance through theories like efficient markets and random walks. Shiller provides prescriptions for policy changes and investor strategies to mitigate the effects of speculative volatility.
Nudge
Improving Decisions About Health, Wealth, and Happiness
Richard H. Thaler
Cass R. Sunstein
In 'Nudge,' Thaler and Sunstein argue that by understanding how people think, we can design 'choice architectures' that nudge people toward better decisions for themselves, their families, and society. The book introduces the concept of 'libertarian paternalism,' where gentle nudges guide people toward beneficial choices without limiting their freedom. It explores various aspects of human decision-making, including the distinction between the 'Automatic System' and the 'Reflective System' of thinking, and provides numerous examples of how nudges can be applied in real-life scenarios to improve outcomes in health, finance, and other areas[1][3][5].
Thinking, Fast and Slow
Daniel Kahneman
In this book, Daniel Kahneman takes readers on a tour of the mind, explaining how the two systems of thought shape our judgments and decisions. System 1 is fast, automatic, and emotional, while System 2 is slower, effortful, and logical. Kahneman discusses the impact of cognitive biases, the difficulties of predicting future happiness, and the effects of overconfidence on corporate strategies. He offers practical insights into how to guard against mental glitches and how to benefit from slow thinking in both personal and business life. The book also explores the distinction between the 'experiencing self' and the 'remembering self' and their roles in our perception of happiness.
The intelligent investor
Jason Zweig
Benjamin Graham
Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.
"The Crowd is Right on Trends but WRONG at the End!" - Nimesh Chandan
Why do investors keep making the same emotional mistakes in the stock market? Why do we chase stocks at their peak and panic sell at the bottom? In this special episode of Wealth Creation Simplified, an investor education and awareness initiative by Bajaj Finserv Mutual Fund our host Anupam Gupta sits down with Nimesh Chandan, CIO of Bajaj Finserv Mutual Fund, to uncover the psychological traps that make even smart investors fail. With 25+ years of market experience, Nimesh reveals how behavioral finance shapes our decisions and how understanding crowd mentality can help you become a smarter, more disciplined investor.
📉 "Psychology is a mirror as well as a lens to look at the market." 📈 "If you're always chasing the hottest stocks, you're setting yourself up to be someone else’s exit strategy." 💰 "Markets reward patience, not emotions—investing is more about temperament than intelligence."
🔍 Key Topics Covered: ✔️ Why herd mentality makes investors buy high & sell low ✔️ How fear, greed, and overconfidence ruin your portfolio ✔️ The 3 biggest behavioral biases that hold you back ✔️ Why long-term thinking beats market timing every time ✔️ How to stay disciplined and build wealth consistently
🔥 If you’ve ever felt FOMO while investing, this episode is a must-watch!
🎧 Listen now and take control of your investment mindset! Don’t miss out! Catch all episodes of Wealth Creation Simplified on the Paisa Vaisa YouTube channel and your favorite podcast platforms.
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Visit www.bajajamc.com to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website ( www.sebi.gov.in/intermediaries.html ). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints on https://scores.gov.in if they are unsatisfied with the resolutions given by AMCs. SCORES portal facilitates you to lodge your complaint online with SEBI and subsequently view its status.
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