I’m just getting into investing and feeling overwhelmed. Should I start with goal-based investing first, or just begin investing small amounts to learn? How do I figure out the right asset allocation for me, and how often should I review my portfolio? I don’t want to just follow hype; how can I invest with real purpose?
Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance
Starting your investment journey can feel overwhelming—but it doesn’t have to be. Instead of following hype or chasing random returns, the smarter path is to invest with clarity and purpose. Experts advice that goal-based investing is the ideal foundation: by aligning your money with your real-life goals—whether short-term, medium-term, or long-term—you give your investments direction. At the same time, don’t hesitate to start small. Regular SIPs can help you learn by doing. With the right asset allocation, guided by your age, income, and risk comfort, and periodic portfolio reviews, you can grow wealth steadily and meaningfully.
It’s completely normal to feel overwhelmed when you’re just starting your investment journey. What matters is that you’ve taken the first step and that’s thinking about why you want to invest. Investing should not be just about chasing returns; it should be about building wealth to meet your life goals. This is where goal-based investing comes in, by identifying your short-term needs (like buying a vehicle), medium-term goals (like funding a wedding), and long-term goals (like retirement), you can give direction and purpose to every rupee you invest.
At the same time, it’s okay to start small and learn by doing. Beginning with small monthly SIPs in mutual funds is a great way to understand how markets work, develop financial discipline, and build confidence. As you learn more and get comfortable, you can gradually increase your investments. The key is consistency, not perfection. Don’t wait until you know everything, experience is the best teacher.
Your asset allocation, how much you put into equity, debt, or other instruments, should be based on your age, income, financial behaviour and responsibilities, time horizon, and risk comfort. A younger person with fewer commitments can have more exposure to equity, while someone with short-term needs may prefer more debt instruments. The allocation should support your goals while keeping risk at a level you’re comfortable with. There’s no fixed formula, but a financial advisor can help guide you.
As you continue your investment journey, remember that clarity beats complexity. It’s tempting to get caught up in trending stocks, social media advice, or quick-return schemes, but real wealth is built through patience, consistency, and aligning your investments with your personal goals. Your asset allocation should grow with you. As your income increases, your goals become clearer, and your risk tolerance evolves, so should your portfolio. Don’t be afraid to make adjustments, but make them thoughtfully and not impulsively. Use your annual portfolio review as a checkpoint, not a reaction to market noise.
Most importantly, avoid comparing your journey with others. Everyone has different priorities, responsibilities, and starting points. What works for one investor may not be suitable for another. Investing with purpose means being honest about your needs and making money decisions that serve you, not social trends.
Lastly, don’t stress about your portfolio daily. Review it once a year, or if something major changes in your life, like a new job, marriage, or big financial goal. Avoid reacting to every market swing or hype in the news. Purposeful investing is about staying focused, being patient, and adjusting when truly needed. Stay curious, stay invested, and let your money work toward what really matters to you.