Why 15% return is great but may not be good enough for you

I was doom-scrolling through social media last night when I saw it again—another screenshot of someone's investment portfolio showing a 15.3 per cent XIRR (a financial metric used to calculate an investment's return). The comments were predictable: "Amazing returns!" "Which funds?" "You're crushing it!" And I get it. Who doesn't love seeing double-digit returns? I'd be lying if I said I don't get a little rush when my portfolio is in the green. But something about these posts always bugs me. When I look closer at these screenshots, it's always the same story—large-cap funds, mid-cap funds, small-cap funds and even some aggressive sectoral bets. All pure equity funds across the board. And I think to myself: are these returns just on the basis of riding a bull market? Your return percentage doesn't tell me how well you sleep Bragging about high returns in a bull market is like boasting about your swimming skills in a calm pool. The real test comes when you're facing choppy waters and headwinds. I've seen too many investors learn this the hard way. Their impressive returns disappeared when they had to withdraw money during a market downturn—whether for a medical emergency, a job loss or even a planned expense like a home down payment. That's when the true value of a balanced portfolio be

This article was originally published on March 28, 2025.