Recently, one of our mid-sized clients was keen to invest in copper after listening to a podcast claiming that "Copper is the next gold."

We have seen this story play out many times before—crypto, real estate, silver, low-rated bonds, gold, thematic funds, and countless other "next big things." Most of these investment decisions are driven by FOMO (Fear of Missing Out) rather than a well-thought-out financial plan.

As fiduciary financial planners and wealth managers, our philosophy has remained unchanged from day one.

We build portfolios based on a client's risk profile and financial goals—not on market fashion. The portfolio is diversified across equity, debt, real estate, commodities (predominantly gold), and cash. Within each asset class, we diversify further to reduce risk. Asset allocation is reviewed rigorously and changed only when the client's risk profile or circumstances justify it. We may allow a small tactical deviation (around ±10%), but nothing beyond that.

To us, this core portfolio is sacred.

Its objective is not to outperform the asset class currently making headlines. Its objective is to deliver consistent long-term outcomes and outperform an appropriate passive benchmark after considering risk.

Ironically, this portfolio often underperforms our clients' own businesses or professions—and that's perfectly fine! It frees up their time and mental bandwidth to focus on what they do best: building businesses, advancing careers, spending time with family, and pursuing their passions.

But what about clients who have strong views on a particular stock, commodity, or asset class?

We have a simple solution.

We encourage them to allocate around 5% to 10% of their wealth to a separate portfolio that we call the Mad Money Portfolio.

This is the portfolio where they are free to express their convictions—whether it's copper, AI stocks, crypto, silver, or any other investment idea. They manage this portfolio themselves based on their own views and interests. And we do not charge fees on this portfolio!!

The only condition?

Keep it completely separate from the core portfolio. A clear Chinese wall should exist between the two.

If their ideas work, they enjoy the upside. If they don't, the damage remains limited because the allocation is small. Most importantly, the core portfolio—and the family's long-term financial security—remains protected.

People following strict diets often have a cheat day. We believe the Mad Money Portfolio is the investing equivalent of that cheat day. It satisfies the urge to experiment while preserving long-term discipline.

After more than two decades in wealth management, one lesson has remained constant: our portfolios have consistently delivered better long-term outcomes than their respective passive benchmarks, even though they may underperform whichever asset class happens to be fashionable in the short term.

Successful investing is less about predicting the next winner and more about staying disciplined through every market cycle.

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:

1. Investment in the securities market is subject to market risks. Read all related documents before investing.

2. 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.

3. Financial products recommended by us that are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance redressal mechanism.