In every portfolio that I review I see 2 things – say 5 shares give dramatically high returns and the others give decent, bad and terrible returns. So over a 30 year neglected portfolio with an IRR of 20%, it is because of a few in the 30+ range and a few in the 5-6% range.
A few years give dramatically good returns and other years are bad.
These are the characteristics of EQUITY. This will not change at all.
Doing a sip for 5 years, investing in 5 fund houses’ flagship schemes will not help if you are not willing to sit tight doing a sip and having a 20 year view. If you can’t do this, basically, you are in trouble.
You can mitigate some of this trouble by investing in a sip on a regular basis while having a long view in mind.
If you cannot do that, having an IFA with good knowledge of Equity surely helps.
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