Most new and even experienced investors commit a few common errors that silently eat into long term wealth. These Mistakes That Kill Your Returns may look harmless, but over years they can create a massive difference in how much money you actually build.
If you fix these early, your portfolio grows faster, smoother and with far less stress.
The 3 Major Mistakes That Kill Your Returns
Let’s break down the three biggest Mistakes That Kill Your Returns and understand why avoiding them is the smartest thing you can do as an investor.
1. Checking NAV Daily
Daily NAV watching gives you no benefit. In fact, it harms your behaviour.
Mutual funds are designed for long term growth. Markets move up and down every day. This is normal. But when you refresh NAV every morning, your mind shifts from long term investing to short term trading.
This is one of the key Mistakes That Kill Your Returns because:
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You react emotionally instead of logically.
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You start making unnecessary changes.
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You feel anxious even when the fund is performing perfectly well.
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You doubt your plan and second guess your own decisions.
Good investing is boring. Wealth grows quietly in the background. Long term compounding does not require daily checking. It requires patience, a stable plan and discipline.
Instead of checking NAV daily, review your portfolio only once every 6 months. You will invest with a clearer mind and stronger results.
2. Stopping SIP During Market Fall
This is a classic behaviour mistake.
When markets fall, most people panic and stop their SIP. They feel they are “saving themselves from loss”. But in reality, they are destroying future returns.
Stopping SIPs during a fall is one of the Mistakes That Kill Your Returns because you miss the most important phase of wealth building: low price accumulation.
During market fall:
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NAV is cheaper.
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You get more units for the same SIP amount.
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These extra units grow the fastest during the recovery.
If you pause SIPs at that time, you lose the advantage of buying at a discount.
History proves a simple truth:
The people who stayed invested and continued SIPs during corrections built the highest wealth.
Markets always recover over time.
But if you stop investing during fall, your portfolio misses the most powerful compounding periods.
Your strategy should be simple:
Stay consistent. Ignore noise. Let SIPs run for years without touching them.
3. Investing Without Clear Goals
Investing without a clear financial goal is like driving without direction.
You may move fast, but you will not reach the right destination.
Not having goals is one of the least discussed Mistakes That Kill Your Returns because:
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You do not know which fund type fits your purpose.
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You do not know how long you should stay invested.
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You do not know how much risk you can take.
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You do not know how much to invest and for how many years.
Goals create clarity. Clarity creates the right asset allocation.
The right allocation leads to better returns with controlled risk.
Examples of clear goals:
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Child’s education after 10 years
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House down payment after 5 years
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Retirement corpus after 25 years
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Emergency fund within 12 months
Once your goals are defined, your investment path becomes straight.
You stop chasing random funds and start building a structured, long term plan.
Why These Behaviour Patterns Matter More Than Market Movements
Most people think market volatility harms returns.
In reality, behaviour harms returns more than the market itself.
The Mistakes That Kill Your Returns are behaviour driven:
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Impulse decisions
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Fear-based reactions
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Unplanned investing
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Short term thinking
Once behaviour improves, everything else falls into place.
Markets will always fluctuate.
But if your discipline is steady, long term wealth is guaranteed.
How to Build a Strong Long Term Portfolio Without Stress
Here is a simple clean system to avoid the Mistakes That Kill Your Returns and build wealth confidently.
1. Invest Automatically
Set SIPs on auto debit.
When money moves automatically, discipline becomes easy.
2. Review Twice a Year
Not monthly.
Not weekly.
Twice a year is enough.
3. Have Clear Goals
Write them down.
Match each goal with a fund type and timeline.
4. Diversify But Don’t Overdo
2 to 4 mutual funds are enough for most investors.
Avoid holding too many schemes.
5. Stay Invested Long Enough
Time in the market beats timing the market every single time.
6. Talk to a Financial Planner
Guidance saves money, time and stress.
A planner helps you avoid the Mistakes That Kill Your Returns early in your journey.
A Quick Example:
Two people invest the same amount monthly for 10 years.
Person A
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Checks NAV daily
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Stops SIP during corrections
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Changes funds frequently
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Has no clear goal
Person B
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Ignores daily movements
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Continues SIP even in falls
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Invests with proper goals
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Stays consistent
After 10 years, Person B ends up with almost 25 to 40 percent higher returns only because of behaviour, not because of higher investment.
This is the real power of avoiding the Mistakes That Kill Your Returns.
Final Thoughts
Investing is not complicated.
Building wealth is not complicated.
What complicates everything is emotion-based decisions.
If you avoid the three big Mistakes That Kill Your Returns:
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Checking NAV daily
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Stopping SIP during market fall
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Investing without goals
Your long term returns will automatically improve.
Stay consistent, not perfect.
Keep investing with discipline.
Money grows when habits grow.
Read Another Blog
Before You Start Investing: The Essential Financial Foundations You Must Build
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