How to strike a balance between investment expectation and financial goal

Investors must manage their biases and decide what is the right size for each of their positions in a portfolio

One memorable lesson from my induction training in a company was that “expectation reduces joy”. In a professional setting, it’s crucial to manage expectations, particularly regarding salary hikes and promotions, as unrealistic expectations can lead to disappointment, decreased productivity and poor health.

At the same time, setting high but rational goals is important, not just professionally but also in personal relationships and investments.

As an investment adviser, managing client expectations is crucial. I often ask clients about their risk appetite and return expectations. Many have unrealistic expectations, such as doubling their investment in three years, which would