In the world of stock markets, the allure of picking a multi-bagger and boasting about it to friends is undeniable. However, before diving headfirst into managing your own equity portfolio, a critical self-assessment is necessary. Devina Mehra, founder of First Global and an investment expert, poses a fundamental question to aspiring do-it-yourself (DIY) investors: are you truly the best fund manager for your money?
The Allure and Reality of DIY Stock Picking
Many new investors are driven by a desire to learn and the thrill of the game, often feeling that professional management through mutual funds or Portfolio Management Services (PMS) is too mundane. The underlying thought, as Mehra points out, is often a belief in one's own superior intellect compared to "so-called experts." Published on 17 December 2025, her opinion piece serves as a reality check.
She acknowledges that managing your own investments is indeed the best way to understand market mechanics. The learning experience is valuable. However, she urges a shift in perspective. The core of her argument is to treat yourself as a fund manager—labelled 'I/Me'—and evaluate your performance with brutal honesty.
Become Your Own Harshest Critic: The Fund Manager Audit
Mehra's proposed exercise is straightforward yet powerful. Investors must dig out their complete trading history from their Depository Participant (DP) statements, accounting for every single stock bought—not just the winners showcased at parties, but also the painful losses, the stocks that no longer trade, and the "great story" that crashed by 80%.
This complete track record forms the performance data for Fund Manager 'I/Me'. The next step is to gather identical long-term performance data, including returns, volatility, and behaviour during market drawdowns, for five professional mutual fund or PMS schemes you might consider.
Now, place 'I/Me' as Fund Manager No. 6 in this lineup. Objectively compare all six. Key questions to ask include: Is your personal portfolio the best in terms of sustained long-term returns? How did it fare during turbulent times? If 'I/Me' was a stranger, would you entrust them with your life's savings?
The Crucial Allocation Decision
The logical conclusion of this audit dictates your investment strategy. If Fund Manager 'I/Me' is not objectively the best, then the question becomes one of allocation. How much of your total investment corpus should you allocate to your own stock picks versus professional managers?
Mehra allows for the possibility that an investor may have learned from past mistakes and improved. This 'I/Me' fund manager might deserve a slightly higher allocation based on newfound potential. However, she stresses practical constraints: unlike full-time professionals with research teams, individual investors have day jobs and limited time.
Therefore, she suggests a pragmatic approach. A small portion can be designated as "play money" for the learning experience and the social thrill of discussing picks. "A bit of play money is fine," she notes. But for the substantial bulk of one's portfolio, the data often reveals that professional avenues like mutual funds, PMS, or guided smart baskets are more reliable.
This exercise forces a move away from vague impressions of superiority to an earnest, data-driven self-evaluation. For most retail investors, the outcome likely favours relying on professionals for core investments while keeping self-managed bets limited and educational. As Devina Mehra concludes, this clarity is the first step toward happier and more effective investing.
