It’s that time of the year when we check our investments—tax season is here, and we need to see if our portfolio needs any changes. Along with the numbers, emotions also play a big role. Let’s break it down simply.
Disappointment? It’s Normal!
Example: Your fixed deposits gave low returns, while your stocks did well. But your friend’s real estate investment didn’t grow as expected.
Reality: If everything in your portfolio was doing great at the same time, you might be taking too much risk in one area. Different assets perform at different times—some rise, some fall. This is healthy diversification.
Do You Dislike an Investment?
Example: You bought a mutual fund because someone pushed you, but now you don’t even understand how it works.
What to Do:
- Ask: “Why did I buy this?”
- Write 3 reasons to keep it (or exit).
- If you still dislike it, research more or consider selling.
Feeling Fear? Check Your Risk Level
Example 1: Your stock doubled, and now you fear a crash.
Example 2: A stock fell 30%, and you’re panicking.
Reality: Fear means your investments don’t match your risk tolerance.
- If losses stress you, maybe reduce risky stocks and add safer options like bonds.
- If gains scare you, remind yourself: “Long-term investors stay calm.”
Urgency to Act? Be Careful!
Example: Gold prices are rising, and everyone says “Buy now!”
Risk: Buying after a big rally often means overpaying.
Solution: Stick to your original plan. If gold was 10% of your portfolio, don’t jump to 30% just because it’s trending.
Regret? Don’t Dwell on the Past
Example: “I should’ve sold last year!” or “Why didn’t I buy Bitcoin earlier?”
Truth: Regret doesn’t help. Instead:
- Take small corrective steps (sell a little, invest a little).
- Avoid ignoring losses—face them and adjust.
Final Tip: Focus on What’s Working
Some investments will make you proud (like a well-performing mutual fund).
- Use that confidence to handle the disappointments.
- Stick to your long-term plan – don’t let emotions drive impulsive decisions.
Bottom Line: A good portfolio isn’t about everything being “green.” It’s about balance, learning, and staying calm! 💡
