• Defense fund restrictions: HDFC closed its defense NFO early and paused new SIP registrations for about 1.5 years to curb unrealistic investor return expectations, despite maintaining its positive long-term structural view.
• Retail investing biases: Individual investors often prioritize short-term IPO listing outcomes over business fundamentals, frequently suffering from loss aversion by holding onto losing stocks while prematurely selling long-term compounders.
• Exponential AI disruption: Artificial intelligence is driving non-linear, exponential change across all industries and society, making 3- to 5-year outcomes difficult to forecast and reinforcing the need for a strong margin of safety.