When planning for a goal, we all rely on the same flawed equation: "Itne Time me itna return Mill Jaayega." (I will get this much return in this much time.) ⏰

This tendency to ignore the Holding Period when calculating returns is Myth 25—a crucial error that leads to unrealistic expectations and forces you into risky investments that are unsuitable for your risk profile.

In this analytical episode of The Middle-Class Mistake, we break down why prioritizing a strict timeline over the quality of the asset is financial self-sabotage.

🎧 Join the conversation to learn:

• The Absolute Return Blunder: Why focusing solely on the final return percentage (Absolute Return) for a long period is misleading and ignores the power—or failure—of compounding.

• The "Goal at Any Cost" Mistake: How demanding a specific return by a fixed date makes you choose risky assets just to meet your target, often leading to capital loss.

• The Solution: Annualized Return (IRR). Learn why calculating the annual compounded growth (IRR) is the only way to effectively measure portfolio performance over time.

💡 Sanchit Taksali's 4-Point Timeline Check:Stop prioritizing time! Use these questions to ensure your financial plan is realistic and risk-adjusted:

1. Goal Sufficiency: Is the expected return realistically enough to contribute to the goal within the set timeline?

2. Obstacle Analysis: What are the potential economic or market obstacles that could derail this timeline?

3. Risk Necessity: Is taking this level of risk truly necessary to achieve this specific return?

4. Expert Guidance: Should I seek expert advice before committing to this aggressive timeline?

🔮 Next Episode Teaser:Do losses mean bad luck? Next time, we tackle Myth 26: Blaming Destiny – "Khoob losses hue hai - Yeh meri Kismat mein nhi hai." (Lots of losses happened—it’s not in my destiny). Is loss connected to your fate or your calculations?

[ Financial Literacy | Sanchit Taksali | Annualized Return | Time Value of Money | Hindi Podcast | Investment Mistakes | Risk-Reward ]