My MF portfolio is worth six crores in spite of multiple mistakes

In this edition of the reader story, a reader who prefers anonymity explains why, despite making most mistakes in the book, his mutual fund portfolio is worth about six crores today.About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at the bottom of this article. You can also access the full reader story archive.Opinions published in reader stories need not represent the views of freefincal or its editors. We must appreciate multiple solutions to the money management puzzle and empathise with diverse views. Articles are typically not checked for grammar unless necessary to convey the right meaning to preserve the tone and emotions of the writers.If you would like to contribute to the DIY community in this manner, send your audits to freefincal AT Gmail dot com. They can be published anonymously if you so desire.Please note: We welcome such articles from young earners who have just started investing. See, for example, this piece by a 29-year-old: How I track financial goals without worrying about returns. We have also started a new “mutual fund success stories” series. This is the first edition: How mutual funds helped me reach financial independence.This should be the shortest reader story to feature here. The fault is mine. Pattu sir asked me to expand the article, but I did not know how, or maybe I was reluctant. I usually write emails in telegraphic language using bullets. I want to follow the same here. I apologise to the readers for this.I started investing in mutual funds in 2004. My first fund was the Franklin India Prima Fund. My second fund was HDFC Top 200.Over the next 10 years, my mutual fund portfolio started growing in size because I used to ask my distributor stupid questions like, “Tell me the best performer”, “Which fund offers the highest dividend?”, “When is the next dividend?” (so that I could buy that fund!).My distributor warned me that I did not need that many funds, but I did not listen. I pestered him until he gave in.After 2013, with the introduction of direct plans, I had the freedom to buy as I pleased and purchased every NFO I thought was interesting.I chased after mutual fund star ratings.As Pattu Sir would say, I suffered from shiny object syndrome.I finally stopped in 2016 after a chance introduction to freefincal. I had 87 equity mutual funds! You name it, I had it. Dividend option, growth option, regular plan, direct plan, sector funds, Value Funds, ELSS, Mid cap, small cap, everything.I also had 15-16 debt mutual funds! Over these years, at least five funds would have faced credit events thanks to my greed for higher returns.It took me seven years to trim down my portfolio.  I now hold 8 equity funds and four debt funds.  Since my portfolio has also grown large over the years (a little over six crores), I cannot reduce the number further as that would be putting too much money in one fund.I recently aligned all my investments to my financial goals thanks to the freefincal robo advisor tool. It was a great relief when the tool told me I had achieved financial independence and could afford to retire (I am 52 now).I feel so ashamed when I look back but grateful to have some reduced clutter and lucky to have built decent wealth.I have worked only in India—no “onsite opportunities” in my field. My salary is neither too low nor too high (IMO!). And thanks to my parents, I have always been frugal. So, I always managed to invest a decent amount each month. Of course, I invested it all in too many funds, but thankfully, not in the wrong asset class.I purchased mutual funds left and right, like buying snacks before a party in a supermarket. Yet I somehow managed to build wealth because:I never stopped investing. I never pulled out. Although I was stupid in my purchases, I had the sense to stay in the market at all times. That is the sure-shot way to benefit from bull runs, in my opinion.I was always investing more and more.  Each year, I tried to increase my investment by as much as possible. I have ensured this increase was at least 10% over these years. I think this is key to building a big corpus.My net worth has nothing to do with skill or intelligence. It was a mix of luck, discipline and stupidity. Thankfully, the first two factors offset the last. I thank Pattu Sir for creating the wonderful resources at freefincal and allowing me to share my journey.Reader stories published earlier:As regular readers may know, we publish a personal financial audit each December – this is the 2022 edition: Portfolio Audit 2022: The Annual Review of My Goal-based Investments. We asked regular readers to share how they review their investments and track financial goals.These published audits have had a compounding effect on readers. If you would like to contribute to the DIY community in this manner, send your audits to freefincal AT Gmail. They could be published anonymously if you so desire.Do share this article with your friends using the buttons below. 🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users! Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this! New Tool! => Track your mutual funds and stock investments with this Google Sheet!Follow Freefincal on Google NewsSubscribe to the freefincal Youtube Channel.Follow freefincal on WhatsApp Podcast: Let’s Get RICH With PATTU! Every single Indian CAN grow their wealth! Listen to the Let’s Get Rich with Pattu Podcast You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.Let’s Get RICH With PATTU podcast on YouTube.Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincalHave a question? Subscribe to our newsletter with the form below.Hit ‘reply’ to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question. Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! Explore the site! Search among our 2000+ articles for information and insight!About The Author Dr. M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter, Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence. Our new course!  Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!    Our new book for kids: “Chinchu gets a superpower!” is now available!Both the boy and girl version covers of Chinchu gets a superpower. Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision-making and money management is the narrative. What readers say!Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child! How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only! Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool! 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Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained) Connect with us on social media Our publicationsYou Can Be Rich Too with Goal-Based Investing Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. 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