From TV Stock Tips to Index Funds: My Investing Journey

Published on / By M. Pattabiraman Twitter: @pattufreefincal

Published: March 7, 2026 at 6:00 am

In this edition of the reader story, we have a personal financial audit in three parts. (1) A reader’s investing journey and how his thinking evolved, (2) a factual audit of his current financial position, and (3) how he is approaching the road ahead.

About this series: I am grateful to readers for sharing intimate details about their financial lives, which benefits us all. Some of the previous editions are linked at the bottom of this article. You can also access the full reader story archive.

Opinions expressed in reader stories do not necessarily 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 it is necessary to convey the right meaning and 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. You can publish them anonymously if you wish.

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 also have a “mutual fund success stories” series. See, for example, how mutual funds helped me achieve financial independence. Now, over to the reader.

My exposure to markets began accidentally around 2010–11, when I was still in my final year of graduation. At that time, my television habits were simple—cartoons and news. One day, while surfing channels, I landed on a business news channel airing a stock market show.

There was an anchor, a guest introduced as a market expert, and callers seeking advice. The expert was confidently telling callers which stocks to buy, which to sell, and which to hold. He spoke with certainty and authority. I was in awe. I remember thinking, people are being told exactly how to make money.

I started watching that show regularly. It became my favourite program on television. I genuinely believed that these experts knew what they were doing and that, someday, I too could benefit from this “knowledge”.

My family, especially my mother, was uncomfortable with this. She would tell me not to watch this “satta bazaar”—a gambling den, as she saw it. According to her, the stock market was not meant for people like us. I brushed this off. I thought she simply didn’t understand modern investing.

Then one day, something happened that stayed with me.

A caller asked for advice on a stock that was in loss. The expert calmly suggested selling it. The caller responded angrily: “It was you who told me to buy this stock on this very show. Now that it is not performing, you are telling me to sell?” The expert replied that the stock could still do well if held for one or two years.

That exchange hit me hard.

Until then, I had believed that experts had clarity, if not certainty. That moment made me realise that advice could change, narratives could shift, and accountability was missing. At that very moment, I told myself something quite extreme: I will never buy a stock directly. To this day, I do not have a demat account.

Soon after, I discovered similar shows focused on mutual funds. The format was identical—anchor, expert, callers—but mutual funds felt safer, more respectable, and more suitable for someone like me. These shows talked endlessly about returns, and that became the only thing that stuck with me. Mutual funds, I believed, were a smarter, more mature version of stock investing.

I graduated in 2012 and started working in 2013. I wanted to invest in mutual funds, but I had no idea how. In 2014, a friend told me to bring a blank cheque and copies of my PAN and Aadhaar. He took me to a person who, he said, would “do everything”.

I asked a basic question: Which mutual fund should I invest in?
The answer was simple: a small-cap fund and an infrastructure fund—because they were giving good returns.

That was enough for me.

Over the next five years, I experienced my first real investing emotions. The small-cap fund would rise sharply, then fall just as sharply. When it went up, I felt smart. When it went down, I felt anxious. The infrastructure fund barely moved and delivered low, single-digit returns. I didn’t understand why. I didn’t know why one fund was volatile, and another was stagnant. Still, I felt some satisfaction that I was at least “investing”.

As my income increased, I added more funds—an ELSS fund and a mid-cap fund in 2018—again based on expert recommendations from television and YouTube. Almost immediately after starting these SIPs, returns began to fall.

Watching NAVs go down day after day was deeply unsettling. I didn’t know what was wrong. I didn’t know whether this was normal. I kept telling myself to be patient, but inside I was frustrated and confused.

What angered me the most was seeing the same experts who had recommended these funds later advising others on television to sell them. When callers confronted them—just as that stock investor had years earlier—the answers were vague: you can sell, you can hold, you can switch. None of it helped me decide what I should do. Meanwhile, expenses were being charged regardless of performance.

That frustration pushed me to learn on my own. I discovered TERs, the distinction between regular and direct plans, and the role of mutual fund distributors. I realised that all my investments were in regular plans and that I was paying higher costs without receiving any real guidance. I felt cheated—more by my own ignorance than by anyone else.

I stopped investing through distributors and started SIPs directly in two large-cap funds and one multi-cap fund. I felt relieved—finally, I was “doing it myself”.

But this only added to the confusion. I now have seven funds across categories: small-cap, infrastructure, ELSS, mid-cap, large-cap, and multi-cap. Despite investing for years, my emotions were still tied to short-term returns. A few months of negative performance would bother me disproportionately. I still had no real understanding of asset allocation or long-term risk.

Index funds were mentioned occasionally, but almost always dismissed as inferior—something for beginners or people willing to settle for lower returns. I absorbed that messaging and stayed away from them.

Everything came to a head in 2020.

During the COVID crash, my entire portfolio turned red. At the same time, I started hearing about diversification formulas like 60–30–10 (flexi/large–mid–small). For the first time, diversification felt like a rule rather than a hope. This structure gave me comfort. I convinced myself that if I just selected the best-performing active funds in each category and maintained this ratio, I would be safe.

I even decided that, starting in 2021, I would clean up my portfolio and implement this plan. I genuinely felt I had finally figured things out.

Around this time, I heard Subra say something that made me uncomfortable. He remarked that when he appears on television, people ask what to do about equity investments that have given negative returns over the last six months. His response was blunt: equities are meant for decades, not months.

I realised with some embarrassment that I was exactly that person.

I was calling myself a long-term investor, but emotionally reacting to every fall. That contradiction forced me to stop and reflect. For the first time, I started thinking seriously about retirement and long-term goals, rather than just returns and recoveries.

Soon after, I read a personal finance audit by Avadhoot Joshi on Freefincal, which led me to the Asan Ideas for Wealth (AIFW) community.

This changed everything.

The conversations there were not about beating the index or finding the next top fund. They were about goals, asset allocation, risk, and—most importantly—behaviour. I realised that most of my stress over the years had come not from low returns, but from not having a framework I could emotionally live with.

Index funds, which I had once dismissed, now made sense. Not because they promised higher returns, but because they reduced decision-making, regret, and self-doubt. They allowed me to stay invested without constantly questioning myself.

My choice to stick with index funds is not ideological. It is personal. I know myself well enough to admit that I cannot consistently pick winning active funds or stick with them through long periods of underperformance. I have lived that cycle already.

My goal is simple: reach a defined financial target in a given time frame with as little emotional turmoil as possible. Index funds help me do that. Others may choose active funds, and that is perfectly fine.

This journey taught me one uncomfortable but liberating lesson: I alone am responsible for my financial outcomes. Index funds are the tool I have chosen, fully aware of their limitations. I have chosen this path deliberately, and I do not intend to return to active funds.

PART 2: The Exact Personal Finance Audit

Are the Basics Covered?

One of the first questions repeatedly asked in the Asan Ideas for Wealth (AIFW) group by Ashal Jauhari is:

“Are the basics covered?”

Before discussing asset allocation, mutual funds, or returns, this question forces a check on financial survivability. Over time, I have realised that without these basics in place, any discussion about investing remains fragile. Using this framework, I am listing my current financial position below, without attempting to optimise or defend any decisions.

  1. Term Insurance
  • Current cover: ₹2 crore term insurance from Max Life
    (Initially ₹1 crore; increased by an additional ₹1 crore as income grew)
  • Income multiple covered: Roughly in line with the commonly suggested basic range of 15–20× annual income
  • Concerns/gaps:
    While the cover broadly meets the basic guideline, it may still need reassessment over time, considering inflation, remaining working years, and future responsibilities.
  1. Health Insurance
  • Personal health insurance:
    • ₹10 lakh base policy + ₹90 lakh super top-up with Tata AIG
    • Policy taken through Neeraj K (AIFW reference)
  • Employer health insurance: ₹6 lakh
  • Known exclusions or worries: None identified as of now

This setup provides high coverage independent of employment and does not rely solely on the employer policy.

  1. Emergency Fund
  • Average monthly expenses: Equivalent of ~3 months
  • Emergency corpus available: Yes
  • Months of expenses covered: ~3 months
  • Parking of funds:
    • SBI MOD account
    • Arbitrage fund
    • A small SIP in a liquid fund started a few years ago to partially address the loss of purchasing power

The current emergency fund provides short-term comfort but does not yet meet the more conservative 12-months-of-expenses guideline.

  1. Goals Identified
  • Retirement:
    • Target age: 60
    • Years away: ~25 years
  • Other major goals: None identified at this stage

At present, retirement is the only clearly defined long-term financial goal.

Assets, Asset Allocation, and Current Position

(December 2025 snapshot)

For consistency and long-term tracking, the retirement corpus is defined upfront as X, and progress is measured relative to this target.

  • Current progress: ~5.3% of the targeted retirement corpus (X)

Absolute numbers are intentionally avoided to keep the focus on structure and progress rather than scale.

Progress toward the targeted retirement corpus (X)

Reader's Progress toward the targeted retirement corpus (X)
Reader’s Progress toward the targeted retirement corpus (X)

This chart tracks progress relative to the defined retirement goal and is used only as a directional indicator, not as a measure of short-term performance.

Overall Asset Allocation (%)

  • Equity: 60.48%
  • Debt / Stability: 39.52%
Reader's Asset allocation over time (Equity vs Debt)
Reader’s Asset allocation over time (Equity vs Debt)

Equity Allocation (% of Equity)

  • Nifty 50 Index Fund: 88.84%
  • Other Equity Mutual Funds: 4.70%
  • NPS (Equity component): 6.46%

The equity portion is intentionally concentrated around a broad-market index.
The allocation to other equity mutual funds represents legacy investments from an earlier phase of my investing journey. Most of this exposure has already been withdrawn over time, with proceeds either reinvested or redeployed elsewhere. Going forward, this allocation is expected to reduce to zero, as no fresh investments are planned in active equity funds.

Debt / Stability Allocation (% of Debt)

  • EPF: 50.39%
  • PPF: 11.79%
  • NPS (Debt component): 37.18%
  • Gold (SGB): 0.63%

Debt allocation is dominated by long-term, retirement-oriented instruments, resulting in relatively low liquidity but high predictability.

Context on EPF, PPF, and NPS Contributions

The presence of EPF, PPF, and NPS in the portfolio is largely the result of earlier tax-driven decisions, made before I was introduced to AIFW-style goal-based planning.

  • PPF and NPS were initially started primarily for tax savings under the old tax regime.
  • With the transition to the new tax regime, I was effectively locked into these instruments.
  • Subsequently, my individual NPS was converted into a corporate NPS, and all superannuation benefits were transferred to this account.
  • As a result, my employer now contributes to both EPF and NPS on an ongoing basis.
  • PPF contributions are currently kept at a minimum level, primarily to keep the account active rather than as a core accumulation vehicle.

This explains why a significant portion of the debt allocation is concentrated in EPF and NPS, even though fresh voluntary contributions are limited.

Portfolio Allocation (% of Total Portfolio)

  • Nifty 50 Index Fund: 53.73%
  • Other Equity Mutual Funds: 2.84%
  • EPF: 19.91%
  • PPF: 4.66%
  • NPS (Equity + Debt combined): 18.60%
  • Gold (SGB): 0.25%

NPS is primarily used as a structural tool to correct asset allocation whenever the intended equity–debt balance (60:40) gets disturbed. This approach is based on an idea I came across in a tweet by Swapnil Kendhe, where NPS contributions are used flexibly to tilt the portfolio back toward the desired allocation rather than as a return-maximising instrument.

Liabilities

  • Home loan: No
  • Other loans: No

There are currently no outstanding liabilities.

Changes During the Last Year

During the last year, there has been no major structural change in the portfolio.

Equity exposure has increased gradually and organically, primarily through ongoing investments rather than deliberate rebalancing or tactical decisions. The overall asset allocation framework and investment choices have remained unchanged.

This stability reflects a conscious decision to prioritise consistency over frequent adjustments.

Closing Note

This audit captures my financial position as of December 2025. The portfolio is intentionally simple, largely index-driven on the equity side, and anchored by long-term retirement instruments on the debt side. While certain gaps remain—most notably the size of the emergency fund—they are known and acknowledged.

At this stage, the focus is on behaviour, consistency, and survivability, not optimisation.

PART 3: The Road Ahead

How I Think About the Next Phase

This final section is not about predictions or guarantees. It reflects how my thinking continues to evolve, based on what I have already experienced and what I am comfortable living with over the long term.

  1. Emergency Fund: Comfort as a Lump Sum, Not a Formula

I do not think about my emergency fund in terms of “months of salary” or “months of expenses”. Instead, I am more comfortable defining it as a lump-sum buffer that provides both practical and psychological comfort.

Rather than chasing a formula-driven target, my approach is to build a standalone emergency corpus that feels sufficient for unexpected situations. To support this, I have started a SIP in a liquid fund earmarked specifically for this purpose and to mitigate the loss of purchasing power, as discussed earlier.

This allows the emergency buffer to build gradually and independently, without forcing abrupt changes or drawing from long-term investments.

  1. Index Funds: A Conscious and Final Choice

My preference for index funds is a deliberate and settled choice, shaped by experience rather than comparison. I do not intend to return to actively managed mutual funds.

Index funds allow me to remain invested without constant evaluation, fund switching, or second-guessing. Going forward, my equity investments will increasingly move toward broader market indices, such as:

  • Nifty 100
  • Nifty 500
  • or a Nifty Total Market index

The intent is to own the market more broadly rather than concentrating only on the largest stocks. As my portfolio reaches a certain size (X), I plan to stop incremental investments in the Nifty 50 and direct new equity contributions toward a broader representation of the Indian equity market.

This transition will be gradual and driven by portfolio scale, not market conditions.

  1. International Equity

At present, international mutual fund investments are constrained due to regulatory limits. Once these limits are lifted, I would like to explore allocating a portion of my equity exposure to international markets.

I have deliberately not fixed a percentage for this allocation. The decision will be taken when the option becomes practically available, based on simplicity of execution and overall portfolio context at that time.

  1. Asset Allocation and Rebalancing: Flexibility in Tools

Currently, asset allocation corrections are largely handled through NPS contributions, and this works for me today.

However, I recognise that this option may not always remain available or flexible. If that happens, I am comfortable using arbitrage funds as an alternative tool for rebalancing between equity and debt, rather than disturbing long-term holdings or reacting to short-term movements.

While the tools used for rebalancing may change, the intent remains the same:
Maintain the chosen asset allocation with minimal complexity and intervention.

  1. On Uneven Contributions and Life Events

Until a few years ago, my contributions were largely regular. During a phase of significant personal change, however, contributions became uneven and, at times, paused altogether.

Rather than viewing this as a failure of discipline, I now see it as an important lesson: long-term investing has to coexist with life events, not compete with them. During this period, the focus shifted from maximising contributions to simply preserving the existing structure and avoiding reactive decisions.

This experience reinforced my belief that a sustainable financial system is one that can absorb interruptions without breaking.

Closing Thoughts

Over time, my focus has shifted away from chasing returns or tracking XIRR. I honestly do not remember when I last checked them.

What matters to me now is steady progress toward a clearly defined target (X). As long as I am moving in that direction, I am comfortable letting the process play out without constant measurement or comparison.

This audit reflects where I stand today, with the understanding that future decisions will be guided by clarity, simplicity, and consistency rather than performance noise.

Reader stories published earlier:

As regular readers may know, we publish a personal financial audit each December – this is the 2024 edition: Portfolio Audit 2024: 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. You can also publish them anonymously.

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About The Author

Pattabiraman editor freefincalDr 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 13 years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), 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, AUM-independent investment advice.
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