The True Puzzle of Investing : The financial year FY25 has brought with it a grave warning for investors. According to available data, 91% of investors suffered losses during this year. For approximately 10 million investors, the average loss amounted to around ₹100,000. These figures do not merely reflect financial setbacks; they also expose a major flaw in investor behavior.

Despite such massive losses, the most shocking revelation is this:
There appears to be very little change in investment approaches.

The reason is that this isn’t a problem of the market, nor is it a problem of information;
It is a problem of ego.

We are human beings, not gods;
We cannot predict the future. No one possesses the power to accurately foretell whether the market will rise or fall tomorrow, or which specific stock will turn into a ‘multibagger’ and when. Yet, most investors harbor the belief that they are different—that they are smarter than the rest.

In reality, there is only one thing we can do:
Prepare for the future with discipline.

In real life, a person first decides on their destination and then determines the pace of their journey. However, in the stock market, the exact opposite occurs. People lose sight of their goals and chase solely after speed.

Quick money,
Fast trading,
Instant results—
It is in the allure of these very things that the majority of investors get trapped.
The terminology changes, but the reality remains the same.

If a loss is incurred, it is euphemistically termed a “learning experience.”
Investments made purely on guesswork are labeled as a “strategy.”
The cacophony emanating from TV channels, YouTube, and Telegram groups is mistaken for genuine “insight.”

Spending the entire day watching market news, altering decisions every hour, and yet continuing to regard oneself as a savvy investor—this mindset does not generate wealth in the long run; on the contrary, it only serves to compound losses.

The path to wealth creation is remarkably simple, yet it is rarely the popular choice.

This path is—calm,
Long-term oriented,
Disciplined,
And, at times, even a little boring. People reject this path not because it doesn’t work, but because it lacks excitement.

Ramesh and Suresh

Both Ramesh and Suresh began investing in 2018. Ramesh would check the market daily, trade constantly, and rely on market tips. In FY25, he incurred a significant loss, yet even today he maintains—”I am still learning.”

From the very beginning, Suresh established clear financial goals and adhered strictly to SIPs, asset allocation, and discipline. Even when the market tumbled, he remained unperturbed. In FY25, his portfolio experienced a temporary dip, yet its long-term stability remained intact.

Both possessed nearly identical levels of knowledge. The sole difference lay in their behavior.

Who is a true investor?

One who does not check the market every day.
One who does not react to every piece of news.
For investing is not a sprint;
It is a long journey of patience.

Why is a Financial Coach Essential for a Family?

Today, every family has a doctor, a lawyer, and even a tax consultant; yet, they often lack a coach to guide and improve their financial behavior. The primary challenge in investing lies in decision-making. Haste, fear, or ego—any of these factors can lead to flawed decisions. A financial coach helps the family clarify their objectives, shields them from market noise, and assists them in maintaining discipline during turbulent times. A coach is essential not because they guarantee wealth accumulation, but because they help prevent financial losses.

Harshal Kothari
International Certified Finance Coach
+91 9006004700