Unrealistic returns expectation is another reason first-time investors lose faith early. They often start with the belief that investing will deliver quick, consistent gains, when in reality, markets are cyclical and can test patience. “When actual returns don’t match unrealistic hopes, disappointment sets in and leads to premature exits, often working as a big wealth destroyer. It is important to remember that success comes from staying disciplined, goal-aligned, and resisting any irrational investing decisions based on emotions that one would experience in a volatile market,” said Harsh Gahlaut, co-founder & CEO at FinEdge.
Therefore, once you have narrowed down the category, evaluating individual schemes is the next step. Experts suggest looking at qualitative and quantitative factors. “Don’t just chase past returns. Consider the consistency of performance, the investment philosophy, how risk is managed, and whether the fund manager has a solid long-term track record,” Mehta added.