I am getting 16% returns on my portfolio.One of my friends said that. What is wrong with this simple statement?This statement is fundamentally wrong in many aspects.One, you got 16% returns till now. You are not guaranteed to receive 16% returns continuously. This statement gives the impression of assurance that similar returns can be expected in the future, which is far from the truth.In many cases, this 16% also hides some key facts. One being that…

What could be wrong in a portfolio managed by well-known wealth management companies? I met a client last month. Two top wealth management companies managed his portfolio. He was happy with the returns. He showed me the portfolio. And here it all came crashing.Below is what was wrong with the portfolio and the possible reasons:1. Asset Allocation: 75% in equity and 25% in Debt. No allocation to Gold. An advisor who understands macroeconomics would have…