16/09/2025
"Commissions will destroy your SIP portfolio!"
I keep hearing this from famous fin-fluencers, and honestly, it's only half the story
Here's their typical example
▶️ ₹30k SIP at 12% for 35 years = ₹20.8 crores
▶️ Same SIP at 11% (after 1% commission) = ₹15.9 crores
▶️ "You lose ₹4.9 crores by paying commission!"
Sounds scary, right?
But let me flip this argument
What if you try DIY investing and mess it up?
The reality I see daily
→ Clients overwhelmed by 2,500+ mutual fund options
→ People picking schemes based on last year's performance
→ Panic selling during market crashes
→ Chasing hot sectors and losing money
Here's what actually happens
DIY Investor (0% commission scenario)
⚠️ Picks wrong funds, panics during volatility
⚠️ Achieves only 9% returns instead of 12%
⚠️ ₹30k SIP at 9% for 35 years = ₹11.4 crores
🔻 Result: Loses ₹5.5 crores despite paying zero commission!
Advised Investor (1% commission scenario)
☑️ Gets proper fund selection and portfolio management
☑️ Stays disciplined during market crashes
☑️ Achieves 11% returns consistently
☑️ ₹30k SIP at 11% for 35 years = ₹15.9 crores
🔺 Result: Still beats DIY by ₹4.5 crores
Most people can't even hold their mutual funds for 3 years, forget 35 years
What good advisors actually do ⬇️
✅ Prevent you from panic selling in 2020, 2022
✅ Stop you from chasing NFO schemes
✅ Keep you invested when emotions run high
✅ Rebalance your portfolio systematically
✅ Plan for your goals, not just returns
The psychology factor - Investing is 80% behavior, 20% knowledge
Those YouTube videos won't compensate you if your DIY approach fails
My take ⬇️
If you are disciplined, knowledgeable, and can stay calm during market crashes - go direct
If you are like most people (including myself with medical decisions - I consult doctors), get professional help
The cost of bad decisions far exceeds any commission you will pay
Need guidance on building a disciplined investment approach?
