Your IQ Won't Save Your Portfolio. This Will.

My journey in Mutual funds is still young. But in this time, few things I have revealed very early by speaking to clients who have lived through multiple market cycles.

Some of the intelligent people I came across were doctors, engineers, businessmen, they struggled more with mutual funds than someone who never had “degrees” like them. Not because they don't understand markets but because they understand too much and act on it too often.

Let me quickly explain, here is what actually happens. A smart person sees the market fall 15%. Their brain is trained to solve problem, says do something. So, without any thinking they redeem. Switch funds. Wait for the right moment to re-enter. That moment gradually never comes. And unknowingly, they lose the years of compounding chasing a decision that was not to be TAKEN.

If you know Morgan Housel, he has said it well, Wealth is built more by behavior than by knowledge. Most people already know what to do. Save regularly, stay invested, don't panic, be patient.  The hard part is doing it when everyone around you is screaming.

The investor who built real wealth rarely had the best funds in the Portfolio. They just never touched it.

Boring wins, every single time. Haha …. Isn’t this intriguing?

Let me know your thoughts if you differ.