You track the markets, check your portfolio regularly, and stay updated with every headline. On the surface, it feels like you’re doing all the right things. But what if these very habits are quietly working against you?
The truth is, many investors don’t lose money because markets fall. They lose it because of small, repeated behavioural mistakes that slowly chip away at wealth.
Jayant Manglik, Partner at Fortuna Asset Managers, believes the real risk isn’t market volatility—it’s investor behaviour. And among the many patterns he sees, three habits stand out as the biggest wealth destroyers.
You check your portfolio often. You track markets, read headlines, maybe even make quick buy-sell calls. It feels like you’re doing everything right. But what if these very habits are quietly eating into your wealth?
Many investors don’t lose money because of bad markets, they lose it because of small, repeated mistakes. And over time, those mistakes compound.
Jayant Manglik, Partner at Fortuna Asset Managers, says the real danger isn’t volatility, it’s behaviour.
CONFUSING ACTIVITY WITH INVESTING
There’s a certain satisfaction in being constantly engaged—tracking stocks, booking profits, switching funds. It gives a sense of control.
But that’s often an illusion.
“Many investors mistake frequent buying and selling for ‘being smart.’ In reality, overtrading erodes wealth through high transaction costs, tax leakage and emotional decision-making,” Manglik explains.
With trading apps making transactions effortless, discipline has become harder than ever. What looks like agility is often just noise.
“Even a 2–3% annual drag due to churn can reduce long-term corpus by 25–30% over 15–20 years due to compounding impact,” says Manglik.
In the long run, wealth is rarely built on speed. It’s built on patience.
PUTTING ALL EGGS IN ONE BASKET
When a sector is doing well, it’s tempting to double down. Midcaps surge, thematic funds shine, gold rallies—and suddenly, concentration feels like conviction.
But that’s where the trap lies. “Recency bias leads investors to extrapolate recent returns indefinitely,” says Manglik.
The danger is subtle. He adds, “Concentration risk doesn’t show up in bull markets, it shows up suddenly in corrections.” A portfolio heavily tilted towards one idea may look impressive for a while, until it doesn’t.
Manglik stresses that balance matters more than brilliance. “A well-diversified portfolio across equity, debt and gold reduces volatility without meaningfully sacrificing long-term returns.”
He states, “Asset allocation drives more long-term outcomes than stock selection.”
DELAYING INVESTING WHILE WAITING FOR THE ‘RIGHT TIME’
Almost every investor has done this — waited. For markets to fall. For valuations to improve. For clarity on global events.
It sounds logical. But it rarely works.
“Many investors sit on idle savings waiting for the ‘right time’, whether it’s corrections, elections or global cues,” Manglik says.
The cost of waiting isn’t always visible, but it adds up. Markets don’t move on cue, and missing even a handful of the best days can significantly impact returns. “Data across decades shows that time in the market beats timing the market,” he explains.
Meanwhile, idle cash quietly loses value as inflation eats into purchasing power.
A more practical approach is structured investing—like SIPs—which reduces timing risk and builds consistency.
The Real Risk Isn’t the Market — It’s You
None of these habits feel risky when you’re making them. In fact, they often feel logical, even disciplined.
But over a decade or more, they can quietly eat into a meaningful portion of your wealth.
That’s why Manglik puts it simply, i.e., the biggest risk in investing isn’t external — it’s behavioural.
Because in the end, successful investing isn’t about doing more. It’s about doing less, staying consistent, and allowing time—and compounding—to do the heavy lifting.
