Lost in Finance Jargon? Here’s How I Finally Made Sense of My Portfolio

When people talked about their investments—things like mutual funds, NAVs, and so on—I used to look interested and nod. To be honest, I knew none of it at the time. I was aware I wasn’t managing my finances well, but every time I attempted to check my investments or learn more by reading a financial article, I ended up scrolling through Instagram instead.

Sound familiar?

Since I figured out my finances without financial knowledge, you can manage your money knowledgeably too. I’m sharing my real story about how I tackled my finances, along with some tips that might help you too.

The Point of No Return

I went along with what my relationship manager and my friends agreed on for the longest time. I wasn’t sure how my money was being spent. It was during the 2020 lockdown that I eventually stopped to examine my investments, and I realised:

• I owned three mutually managed SIPs without really understanding what they were.

• There was a ULIP (Unit Linked Insurance Plan) I couldn’t make sense of.

• I wasn’t quite certain if I could meet all my future goals with my savings.

That was when I realised that no one else would take care of my money if I didn’t handle it myself. That’s something I’m quite sure they do not care about.

Step 1: Googling Isn’t Enough

I first looked up the basic words I needed to know on Google. What does the term NAV mean? The difference between equity and debt is explained in this section. What does an index fund represent?

But the problem is that most of the financial information you find is made for experts by experts. It’s similar to finding out you have cancer when your goal is just to find out about a small cold.

At that point, I switched the way I approached it. I decided to start watching YouTube videos and following people like CA Rachana Ranade, Ankur Warikoo, and Akshat Shrivastava on Instagram. They used basic words and shareable examples to explain things. I learned for the first time what makes an SIP helpful and what having a balanced portfolio truly involves.

Don’t limit yourself to looking up definitions in your studies. Examine videos produced by teachers who guide you through situations you might face.

Step 2: Knowing What I Want

There was a big error I fell into with my research. Investing but not defining your goal. I wasn’t sure if my portfolio should help me travel for a short period, save for a home deposit or support me in retirement. It wasn’t surprising that I felt unsure—it was everywhere.

I created three main categories for all my goals.

• During the first two years, it’s important to build a travel fund and start saving for emergencies.

• After the short term (up to 2 years), you could purchase a car or start a small business in the medium term.

• If you plan ahead (over 10 years), you have the opportunity for retirement and not have money worries.

After doing this, it was much simpler to figure out where to put my various investments. For example:

• I put some cash into easily accessible liquid funds and fixed deposits to cover my needs in the short run.

• To invest for the long run, I chose SIPs in equity funds.

• I made sure not to sign up for insurance-cum-investment plans that don’t allow me to withdraw my money easily when I want to.

If you don’t know what you aim to achieve, no investment will be a good fit.

Step 3: Asset Allocation (A Fancy Term That’s Actually Simple)

The idea of asset allocation always used to put me on edge. What they said was a little technical. Don’t rely on only one system or type of investment.

It turned out that most good portfolios combine various types of experience.

• Equity (Stocks/Mutual Funds): High growth, higher risk.
  
  

• Debt (Bonds/FDs/Debt Funds): Stable returns, lower risk.
  
  

• Gold: Good as an inflation hedge.
  
  

• Cash or Liquid Funds: For emergencies.

After I put my money in these according to my risk, I felt more secure about my investments. I realised my investments weren’t scattered; they had structure and meaning now.

If you’re in your 20s or 30s, go for an investment portfolio that has 70% in equities and 30% in debt. You are free to make changes as your goals or current stage of life change.

Step 4: Things That Make Simple Everyday Life

To make life easier, I put most of my investments on platforms such as:

• You can use Groww and Kuvera for your mutual fund investments.

• For setting and following your goals and planning your spending, use ET Money.

• Check out INDmoney for a complete look at SIPs, stocks, investing in digital gold and credit card rewards.

• I created calendar notifications to check on my portfolio every three months. Stop assuming something is cared for just because you can’t see it.

• Don’t forget how powerful bringing in automation can be. SIPs and reminders make it easier for you to stick with your plan instead of feeling lost.

Final Thoughts

While my portfolio is still developing, I fully understand it because I created it. For me, that knowledge is very comforting. There won’t be any more questions about who gets what. There will be no more guesses.

Never think you can’t control your money just because you aren’t a financial expert. If you’re interested, committed, and brave, you can start right away.

Start small. Don’t be afraid to ask basic questions. Master just one idea per day. Sooner or later, you’ll be fully on top of things.