Important Note: This article is not intended for qualified personal finance professionals or high-net-worth individuals with dedicated financial management resources.
Over two decades as a practicing financial planner, I’ve often met “DIY investors”—people who prefer handling their finances themselves. They rely on bits of knowledge gathered from friends, media, or social platforms, trying to piece together a personal financial plan.
But here’s the reality:
Financial planning isn’t about chasing hot tips or predicting markets—it’s about knowing yourself and staying focused on your goals.
That’s why, in most cases, investor returns fall short of actual investment returns. It’s not poor products or bad markets, but simple human behavior—emotions, impulses, distractions— that get in the way.
✅ The Pros of DIY Financial Management
Cost Savings:
No advisory fees; good if you’re disciplined and knowledgeable.
Full Control:
Freedom to make your own decisions and adapt as you wish.
Learning & Awareness:
Opportunity to enhance financial literacy and market understanding.
Personal Choice:
Ability to invest based on personal beliefs or specific interests.
❌ The Cons of DIY Financial Management
Emotional Bias:
Fear, greed, overconfidence—these drive decisions, often to your detriment.
Narrow Perspective:
Friends and online advice can’t replace tailored, accountable guidance.
Incomplete Planning:
Many DIY investors focus only on returns, ignoring risk management, cash flows, insurance, and holistic asset allocation.
Time & Expertise Constraints:
Managing money isn’t a weekend activity—it demands time, skill, and consistent attention.
🤖 Will AI Replace Financial Planners?
A common question I hear: “Won’t AI make financial planners irrelevant?”
Here’s my simple answer:
AI provides great data. But acting on it requires a human—and humans are emotional.
If your portfolio is down 40% and AI suggests selling your house to buy stocks—will you?
If your portfolio is up 100% and AI says it’s time to rebalance—can you walk away from the euphoria?
That’s why behavioral coaching and goal-based advice will always matter.
🧭 The Smarter Approach: Goal-Based Financial Planning
A qualified, fee-only financial planner helps by:
Assessing your risk profile, goals, and cash flows.
Structuring a balanced asset allocation.
Ensuring emergency funds, insurance coverage, and financial discipline.
Conducting regular reviews focused on your goals—not market noise.
This approach may not make you the richest, but it gives you the best chance of achieving your goals with peace of mind.
🎯 Focus on What Matters
Your best returns come from your career or business.
Your best memories come from family, friends, and hobbies.
Let a professional handle your finances while you focus on life.
After all, we only get one life. Make your financial choices count.
“The investor’s chief problem—and even his worst enemy—is likely to be himself.”- Benjamin Graham
Disclaimer:
- 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.