DIY investing is rising — but you still need help with your money

Especially younger generations — tech-savvy millennials and Gen Z — are attracted to this freedom. They believe that with enough research and discipline, they can manage their own investments successfully. Setting up a monthly SIP in mutual funds, tracking expenses on a budget app, or researching stock picks online seem simple enough.

When DIY works well

DIY finance can be an excellent way to start your financial journey. Learning to track your expenses, build an emergency fund, and begin investing in basic products like index funds are foundational skills that anyone can develop. Doing these things consistently is often better than relying solely on guesswork or procrastination.

Many people benefit from apps and online tools that simplify investing. This empowerment builds confidence and financial awareness, which are vital for long-term success.

Also read | How Rs 1 cr today will become just Rs 25 lakh in 20 years

Where DIY starts to break down

However, personal finance is more than just picking funds or saving a certain amount each month. As your income rises, family responsibilities increase, and your financial goals multiply — such as buying a home, planning your children’s education, or preparing for retirement — the complexity grows exponentially.

Here’s where DIY investing often falls short:

No clear goals: Without defined objectives, it’s easy to create a scattered portfolio that doesn’t work towards anything meaningful.

Poor asset allocation: Many DIY investors either take on too much risk by chasing hot stocks or stay too conservative, missing growth opportunities.

Emotional decisions: Market ups and downs trigger fear or greed, leading to impulsive buying or panic selling.

Tax inefficiency: Ignoring tax implications can significantly reduce your real returns over time.

Lack of portfolio reviews: Without regular check-ins, portfolios get imbalanced and misaligned with your risk tolerance or goals.

These silent leaks can erode wealth slowly but surely. Over years, this can translate into lakhs or even crores lost in potential gains.

Also read | Investing in internet funds? Factors to track before taking the plunge

The hidden cost of going solo

Let’s illustrate this with a simple example. Imagine two investors, A and B, both start investing Rs 15,000 per month at age 30.

- Investor A manages everything alone, relying on tips from social media and hearsay, without a clear plan.

- Investor B consults a financial advisor who builds a strategy tailored to their risk appetite and goals.

Over the years, investor A might panic during market corrections, withdraw money early, or impulsively switch funds based on hype. Investor B sticks to the plan, rebalances regularly, and makes tax-efficient decisions.

By retirement, investor B’s disciplined approach and expert guidance could lead to a significantly higher portfolio value than investor A’s. And beyond the numbers, investor B enjoys peace of mind knowing the plan is aligned with their life.

When to consider professional help

Professional advice is not just for the wealthy — it can benefit anyone who wants to grow and protect their money efficiently. Here are some times when consulting a financial advisor makes sense:

- Life events like marriage, buying a home, or having children change your financial priorities.

- Planning for retirement or early financial independence requires careful, long-term strategies.

- Feeling overwhelmed or confused by financial jargon and options.

- Building a sizeable corpus that needs protection and proper growth management.

An advisor provides not just technical expertise but also emotional discipline, helping you avoid costly mistakes triggered by fear or greed.

Final thoughts

Returning to Munna Bhai MBBS, Dr Asthana's admission that his hands would shake if he had to operate on his own daughter highlights a universal truth — when it’s personal, emotions can cloud judgment.

Managing your finances is no different. Your money is tied to your family’s future, your dreams, and your security. It’s natural to feel anxious or unsure. Trying to go it alone might seem like a cost-saving move, but it can come with hidden costs — lost opportunities, bad decisions, and unnecessary stress.

You don’t have to choose between DIY and professional advice. The best approach is often a hybrid — stay involved, keep learning, but seek expert guidance when the stakes are high.

Just like a skilled doctor who steadies their hands with experience and support, a financial advisor can help steady your financial journey — especially when your heart is deeply invested.

The writer is the Founder of Asset Elixir.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.