What matters more: picking the best fund or being able to stay invested?

Published 19 September 2026

Geetish from Mumbai
Investors spend a lot of time finding the best mutual fund, asset class or strategy. But how much does investor behaviour matter compared with fund selection itself?
Sachin Kabra Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn
Fund selection matters.

Asset allocation matters.

Expected returns matter.

But these are only the starting point.

The deeper question is whether the portfolio you choose is one you can actually continue holding when the experience becomes uncomfortable.

Suppose Portfolio A has theoretically higher expected returns but regularly goes through declines that make you panic, stop your SIP and sell.

Portfolio B may look less exciting on paper, but its risk is something you understand and can tolerate, so you remain invested through the full cycle.

The better portfolio for you may ultimately be Portfolio B because you actually capture its returns.

That is why risk profile is not merely a questionnaire asking whether you are “aggressive” or “conservative.” Your actual behaviour during a falling market matters.

Ask yourself:

Will I remain invested when markets are down?

Did I choose this investment because I understand it, or because its past returns looked attractive?

Will I stop my SIP when volatility arrives?

Can I tolerate a year or two when my portfolio looks worse than somebody else’s?

Does the portfolio actually match my goals, risk profile and behaviour?

A portfolio you constantly abandon does not get enough time to compound, no matter how attractive its historical return looked when you bought it.

The right portfolio is not simply the portfolio with the best historical return. It is the portfolio that gives you a reasonable return for your goals and that you can actually hold through the difficult parts of the journey.

“The right portfolio is not merely the portfolio you can buy. The right portfolio is the portfolio you can actually hold.”

“You do not build wealth merely by finding good investments. You also build wealth by behaving well around those good investments.”

This is not personalized investment advice. Your goals, risk tolerance and financial situation may be different, so assess your own situation and discuss it with your financial advisor.
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