As a part of my advisory, I look at investor portfolios and discuss their investment decisions. Almost every time I am surprised.
I recently looked at a portfolio of an HNI investor.
My learnings – 10 ways to destroy an investment portfolio. Read it carefully.
I often receive reader queries on the blog stating their choices of schemes that should be a part of their winning MF portfolio. They then want to know if it is alright or any change is required.
I recently received another one. As I said this is not the only one. There have been several such in the past. So, this reader had been investing in the following funds and now wanted a ‘second opinion‘ if these funds continued to make sense.
Here is the list of fund scheme names with their options.
The reader was concerned that his portfolio had a loss, that is, the current value of the investments was less than the amount he had invested.
He also made it amply clear that he was looking for ‘maximum returns‘. He mentioned that it was his hard earned money, which to me means that he does not want to take a lot of risk.
And you know what – his retirement is only 5 years away!
This is a perfect textbook example of how one can make all the mistakes in one go. I believe we all have lessons to learn here.
“Have you seen the movie Kai po che?” Vijay suddenly threw this question at me. We had just finished seeing another movie and were driving back home.
“Yes, I have. It was on TV a few weeks ago.” I replied casually.
“Did you like it?” he asked.
“Yes, I did. A lot.”
“Do you know it is based on Chetan Bhagat’s book 3 mistakes of my life?” he continued.
“Oh! I didn’t know that. I haven’t read the book, in fact, none of Chetan Bhagat’s books.” I said with a tone mixed of curiosity and surprise.
“Even I haven’t read it. I got the information from one of the reviews of the movie,” said the movie buff with a twinkle in his eyes. I smiled.
There was a short pause.
I got thinking. I turned to Vijay, who was driving, and asked, “What about the 3 investment mistakes of your life?”