Thread by @IamMisterBond

#Goal Based Investing vs #PortfolioProtection Debate: Sharing my response to that debate: 👇

I have a totally different take in this Goal based investing and communication with Investors.

My 35 years of experience is showing me totally diametrically opposite conclusion to this. Only my observations, please ignore if you do not agree:

My belief is that Goal based investing is only good on paper and may be to get some discipline in Investment habits.

But unfortunately most Investors do not follow it. For example at current juncture, when they have existential crisis, how many will continue on the path of goal based investing? Many have stopped SIPs, many have withdrawn and redeemed.

What happens to their Goals now??

According to me if we would have concentrated (at an Industry level) - #DownsideProtection, being in right #AssetClass at right #Valuations, given less #Volatile journey, #Investors would have continued on their investment journey, converting them from short to Long Term.

Reality-Investors end up having a common pool of investments from where they draw for their different needs. This also stems from the fact that they have limited resources and unlimited wants and needs.

Moral of the story:
Concentrate on safeguarding Investor Portfolios.
😇🙏

I am not against Goal based investing strategies. Only that brings discipline and habit in Investors portfolios. But this should be complemented with strategy of Downside protection, etc. as mentioned above.

Only combination of both will let Investors achieve Financial Nirvana.