Time-starved investors must stick to index funds

While Amit had stayed invested for a long time, avoided leverage, and shunned investment-cum-insurance policies, unplanned investments and mindless diversification had produced a disappointing outcome

Amit, a prospective client in his early fifties, held 82 mutual fund schemes, 28 listed equity shares, and a smattering of bonds and preference shares. He had accumulated this mishmash of investments over the past 22 years. He also had large balances in his Employee Provident Fund and National Pension System accounts.

Our analysis of his portfolio showed that he had invested around Rs 1 crore in multiple lump sums. The total value of his investments now stood at around Rs 2 crore.

Amit gloated about his investment skills based on the fact that his investment in the