However, in reality, investors achieve different levels of success. Considering that achievement of important investment goals is crucial for one's financial future, one must avoid mistakes that can create gaps between expectation from the portfolio and what one actually earns. To begin with, you must identify the real reason as to why and how this gap can occur. Usually, most investors end up attributing it to poor performance of the funds in the portfolio.
While performance plays an important role in determining the level of investment success, it is equally important to analyse whether the portfolio was built to achieve the desired results or not. Although poor performance can indeed be an important reason for this gap, there are a few other factors emanating from your investment strategy that may also create such a situation. Broadly, there can be issues like not choosing funds suitable to your requirements, not following a disciplined investment approach and allowing your emotions to dictate investment decisions that can cause more harm to the portfolio.
This story is from the March 28, 2022 edition of Dalal Street Investment Journal.
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This story is from the March 28, 2022 edition of Dalal Street Investment Journal.
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