After a decade of reviewing portfolios, the same seven errors keep appearing. Check yours against this list.
Most portfolio damage does not come from bad markets. It comes from a handful of avoidable behaviours, repeated by intelligent people. These are the seven we correct most often.
The behaviour mistakes
Chasing last year's winner: buying whichever fund topped the charts, usually just before it cools off. Stopping SIPs in a downturn: which converts a temporary fall into a permanent loss of cheap units. Checking the portfolio daily: which turns a ten-year plan into a daily mood swing and invites tinkering.
The structure mistakes
Owning fifteen funds and calling it diversification: most overlap heavily; five to seven well-chosen funds usually cover everything. Investing without a goal: money with no mission gets withdrawn for whatever comes up. Ignoring nominations and joint holding: a paperwork gap that becomes a genuine hardship for the family later.
And the seventh: treating insurance as investment. Endowment and money-back policies bundle poor returns with thin cover. Pure term insurance for protection, mutual funds for growth, kept firmly separate.
If two or more of these sound familiar, a one-hour portfolio review will pay for itself many times over. That is quite literally what we do all day.
Questions about your own plan?
A short conversation with a veteran-led team costs nothing and usually clarifies a lot.