We were recently reviewing the portfolios of some of our clients who have been with us for more than a decade—some for nearly two decades.
Looking closely at their journey, we realized something interesting.
Their long-term outcomes were not because we always selected the best stock, mutual fund or gold investment.
In fact, there were plenty of products and opportunities we missed along the way.
Yet, their portfolios delivered outstanding outcomes.
Why?
Because they stuck to the plan.
- Asset allocation
- Diversification
- Lower costs
- Tax efficiency
- Simplicity
- And, most importantly, discipline.
More than 90% of the job was simply staying disciplined through good times and bad.
Our biggest value addition was therefore not product selection. It was behavioral coaching—helping clients stay the course when markets were euphoric, when they were fearful, and when FOMO tempted them to change direction.
We were never attracted to exotic products—AIFs, PMS, Nifty-linked debentures, unlisted stocks, unregistered investments, crypto and the like. We also stayed away from insurance products being sold primarily as investments.
We continued to believe that simplicity works.
And there was another important benefit.
Our discipline helped clients focus on what they were actually good at—their business or profession.
They could spend quality time with their families and friends, take care of their health, and live their lives, while their financial portfolio compounded quietly in the background.
Our old tagline captured this beautifully:
“Give us a maximum of four hours a year—and do what you want.”
Because everyone, irrespective of their stature or wealth, has only 24 hours in a day.
Those 24 hours need to be divided between business or profession, family and friends, health, sleep—and managing personal finances.
Spending excessive time on non-core activities such as managing personal finances can sometimes come at the cost of the things that matter more.
At Naveen Rego Capital, a fee only wealth management firm and a non-individual SEBI Registered Investment Adviser, we believe our role goes beyond selecting financial products.
We specialize in the softer—and perhaps most critical—side of wealth management: Behavioral coaching.
We help clients in:
• Maintain the right asset allocation
• Diversify appropriately
• Keep costs low
• Improve tax efficiency
• Keep things simple
• Stay focused on the long term
• Avoid unnecessary complexity
• Resist FOMO
• And, most importantly, stay disciplined
We have seen the power of this approach over the past two decades.
We believe the same principles will continue to work for the coming decades.
You don't need to find every winner.
You need to avoid making too many mistakes and stay invested long enough for compounding to work.
If you have missed any of our previous articles, please visit https://naveenrego.com/blog-grid.php?aW5pdGlhdGl2ZXNfdHlwZV9pZA=MQ
Happy Financial Planning!
Naveen Julian Rego – CFP®
MD & Principal Officer
Naveen Rego Capital
SEBI Registered Investment Adviser
Reg No: INA000019211
BSE Membership ID: 2178
Disclaimers:
- Investment in the securities market is subject to market risks. Read all related documents before investing.
- Registration granted by SEBI, enlistment as IA with Exchange, and certification from National Institute of Securities Market (NISM) in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
- Financial products recommended by us that are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance redressal mechanism.
