Discipline Over Luck: Why Saugata Chatterjee Believes Consistent Investing Builds Lasting Wealth

In the latest episode of the Simple Hai! podcast, Saugata Chatterjee, President & Chief Business Officer at Nippon Life Asset Management, explained how Indian investors are shifting to disciplined wealth building. Speaking to veteran finance journalist Vivek Law, he covered topics like compounding in equity and debt, turning volatility into opportunity, steps to start with mutual funds, and lessons from wealthy investors, all centered on the rule: earn, invest, then spend.

While equity markets often dominate financial conversations, Chatterjee highlighted that “compounding works equally well in debt instruments”, provided that the investors understand the principle of time.

“Equity gives you participation in growth, but debt gives you stability,” he said. Both have compounding power and the only difference is in the slope of the curve. The earlier you start, the sooner you reap the compounding returns.

When you invest in a debt fund, it invests in bank deposits, government securities, corporate bonds etc. and as a retail investor, you are often searching which bank or corporate deposits to invest in to get higher returns.This task gets simplified by experts who help you build your portfolio.

Debt mutual funds, he added, also offer structural advantages like tax deferral, liquidity, and diversification. “In a bank fixed deposit, you pay tax every year on accrued interest. In a debt fund, tax applies only at redemption. That uninterrupted compounding creates silent but meaningful growth over time.”

How To Start Investing through Mutual Funds?

Chatterjee strongly advocated for a simple, foundational principle for financial discipline, Income minus your investment is equal to expenses. He noted that most people do the opposite, spending first and then considering savings, which prevents necessary financial action

He said, “Mutual funds are the best way to get into investing as India is a growing economy as it will help you capture the growth of the economy through your investment process without meeting inflation.”

If you want to invest in fixed deposits, do invest, but if you want to diversify, it can best be done through mutual funds, he maintained. Mutual funds have been designed to make people convert savings into an investment vehicle, he added.

These are the steps that one can invest, according to Chatterjee:

First Step: Income minus your investment is equal to expenses.

Second Step: Know your purpose and set your goals

Third Step: Figure out which are the baskets you would like to invest in

As the awareness around investments is now high among Indians, Chatterjee recommended seeking advice from a mutual fund distributor. However, he cautioned against getting into investing without planning, which is what a lot of people have done in their journey due to the digital revolution.

Market volatility is often seen as a threat, but Chatterjee feels otherwise. “Market volatility does not impact portfolio returns, it gives you protection,” he said. Just as life is unpredictable, so are markets. The key, he emphasises, is to remain consistent through both.

According to Chatterjee, volatility presents opportunity. Investors who maintain discipline and continue investing when others are fearful often reap the benefits of compounding in the long run. “If you stay steady through uncertain times, resilience builds and this works both in life and in investing,” he added.

He added, “Volatility is your friend, never your enemy.” It helps rather than harms. He advises investors to trust their investments and avoid reacting to short-term market swings. “If you exit, you risk missing the reap for your investments, that’s often just around the corner,” he noted.

Chatterjee, who has worked with Small and Medium Enterprises (SMEs) and High Net Worth Individuals (HNIs), noted that individuals have a desire to build a legacy and feel the need to give back to the society. He stated that this is what he thinks that has made the SME business very large in India. Apart from this, SMEs are also very innovative and very transparent.

He added that they are also demonstrating greater patience and focus on long-term wealth conservation. They typically keep 75% to 80% of their wealth in long-term reserves, which is good for all of us, as they are aiding the capital market and the economy indirectly.

For Chatterjee, India’s investment evolution is a story of steady transformation from saving to disciplined, patient investing. Ultimately, his message is clear: by earning, investing, and then spending, investors can navigate the unpredictable nature of markets and life to build wealth that endures and creates lasting legacies.