As we bid farewell to 2024, I can’t help but reflect on how my resolutions for the year panned out. Unlike the usual personal goals, these were ambitious—aimed not at mere mortals but at the capital market regulator itself. Yes, I termed it “A Concerned Investor’s 2024 Agenda for Sebi.” Lofty? Absolutely. But was it worth it? Let’s see.
Sebi’s scorecard
First on my agenda was the need to temper the infatuation with SIPs. My argument? Many SIP decisions are poorly thought through, often directed toward unsuitable schemes. On this count, the regulator did little. SIPs remain as popular as ever, riding their boom unchecked.
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Next, I called for stronger efforts to encourage more people to become Registered Investment Advisors (RIA) and Research Analysts (RA). While the Securities and Exchange Board of India (Sebi) has made strides, the burden of compliance still looms large. The result? A far cry from a stampede toward these professions.
I also pushed for a shift in focus—from faster trading systems to a more investor-friendly environment for long-term players. Here, Sebi has hit the ball out of the park with the cost of gambling, ahem, trading going up dramatically. I read this as a shift in focus that was desired.
Finally, I suggested a complete overhaul of investor education in India to curb uninformed decisions and mis-selling. While this remains a work in progress, Sebi’s crackdown on the “finfluencer” menace deserves applause.
On balance, 2024 turned out to be a good year—progress on several fronts, with each initiative carrying the potential for long-term impact.
2025: Resolutions for you, dear investor
As we enter 2025, let’s shift gears. This year, the resolutions are for you, the investor. Here’s your roadmap to a more informed and disciplined investment journey:
Master asset allocation: Before making any investment, understand your asset allocation. Align every investment decision with your recommended allocation. In the long run, your financial well-being will depend more on this discipline than on any spur-of-the-moment investment bets.
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Think beyond equities: Being a perpetual equity bull irrespective of valuations is irrational. A well-rounded portfolio should include various asset classes. The goal is to meet your financial objectives sensibly, with the least risk possible—not solely through equities.
Do your homework: Whether you manage your investments yourself or work with an intermediary, diligence is key. If you have the skills to make informed decisions, great. If not, take the time to find an honest and skilled advisor. Missteps here could jeopardize your financial future.
Be sensible with stocks: If you invest in stocks, ensure it aligns with your time and skill for research. Holding a dozen mutual fund schemes or multiple SIPs without a strategy? Go back to finding the right intermediary. If you consider yourself an expert, self-assess critically.
Follow Warren Buffett’s mantra: invest like you’re buying a piece of the business, think long-term, and avoid overpaying. Concentrated holdings, if well-chosen, can yield significant rewards.
Avoid debt: Steer clear of debt unless it’s for buying a home or bridging short-term payments. Debt can feel manageable in bullish times but becomes a liability when markets turn. Remember the mantra: Never a debtor be.
So that’s my resolution list for you, dear investor.
Also read | The smart money is dumb money
As you step into 2025, take these resolutions to heart. After all, your financial success depends not just on what the markets do, but on the discipline and decisions you bring to the table.
Happy investing in 2025 and beyond.
Rahul Goel is a finance and publishing professional with over 25 years of experience in the industry. You can tweet him @rahulgoel477.
You should always consult your personal investment advisor/wealth manager before making any decisions.
