All asset classes—gold, real estate, bonds, equities—are shining. Mutual fund SIPs are at record highs, IPO collections are breaking records, numerous thematic Mutual funds NFO’s are launched, tax rates are being reduced, and AI mania is fueling optimism.
Everything looks too good. But the big question is: who could be the party pooper? Is it Donald Trump??? Russia or China? AI?
As Benjamin Graham, the father of value investing, said: “The investor’s chief enemy—and problem—is likely to be himself or herself.”
This timeless truth reminds us that it’s often not the markets, but our own behavior, that derails financial success.
So, what should we do? Should we sell everything and hold cash? Certainly not. Instead, it’s time to revisit the first principles of financial planning:
- Don’t extrapolate past returns. The last 1, 3 or 5 years of equity or gold performance tells us little about the next 1–3 years. Hence, reduce expectations.
- Think long-term with equities. Stocks and equity mutual funds are best held for 10+ years—definitely not less than 5 years.15% p.a. annualized returns over 5 years are not 15% returns each year. Embrace volatility.
- Stagger your equity investments. Avoid lump-sum equity investments (stocks and equity mutual funds) so as to reduce the risk of market timing. Benefit from volatility.
- Keep 25% allocation in conservative products. Banking or conservative mutual funds provide stability—you never know what lies ahead.
- Limit gold allocation. Gold has long stagnation phases. If investing now, keep a 7–10-year horizon, and cap allocation at 10% (excluding jewelry).
- Diversify wisely. No single passive strategy should form more than 5% (certainly not over 10%) of your wealth.
- Skip the hype. IPOs and thematic funds often look exciting but rarely reward long-term investors.
- Day trading and Derivatives: Stay away if you are not a full-time professional doing this.
- Avoid heavy EMIs. Be cautious when committing to large housing loans. Job loss combined with market downturn can wreak havoc to your personal finances.
- Revisit your health and term insurance portfolio. These will not give returns but protect your personal finances.
We cannot control the external environment. The least we can do is to plan our personal finances well. At Naveen Rego Capital, we believe financial planning is not about outperforming your neighbor’s wealth, but about achieving peace of mind—and a good night’s sleep.
Naveen Julian Rego, CFP®
MD & Principal Officer
Naveen Rego Capital
www.naveenrego.com
Date: 25-09-2025
Note and disclaimers:
- Investment in the securities market is subject to market risks. Read all the related documents carefully before investing.
- Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
- Financial products recommended by us which are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance mechanism.