If you have an advisor, it is quite common for you to hold your advisor accountable for your returns. While this is your legitimate right, it still has to be handled judiciously. But, if you were your own decision maker or a do-it-yourself investor then would you give yourself a different timeline?

If the answer is yes, then there is a need to rethink. Portfolio performance is primarily a function of markets. If the markets are buoyant with robust investment flows, then an advised investor should normally outperform benchmarks, DIY investors, and peers. But, in sideward markets or in volatile times, the performance may be too unreliable to judge. Ironically, that is when investors tend to be in a tearing hurry to judge. This causes investors to reach hasty conclusions leading to hurried decisions.

This must be avoided at all costs as volatile times are when wiser counsel matters the most. In fact, investors who seek the right counsel from a credible source will do better than reactive investors. What an investor must do now is to defer seeking performance and seek the right counsel to ensure they take advantage of the prevailing volatility rather than succumb to it. More importantly, one will need to fix the right time frame for themselves.

Being kinder in judging performance in a fundamentally sound investment during volatile times helps. That will ensure the good times turn out to be most profitable.

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