Investing with Intent: Why Purpose-Driven Portfolios Are Gaining Ground

Over the years, there has been a noticeable shift in the investment behaviour of a majority of people. While traditional metrics like returns, volatility, and risk-adjusted performance remain important, many investors are beginning to look beyond just the numbers.

“Investing is becoming less about chasing the highest returns and more about aligning investments with goals and priorities. When times become unpredictable or are full of information clutter on social media, purpose provides a much-needed anchor,” informs Harsh Gahlaut, Co-Founder & CEO, FinEdge, a financial advisory firm.

Clarity and intent become the starting point for undertaking this journey which is long and arduous but could be extremely rewarding if the process is aligned to your financial goals and enabled by consistency and discipline.

1. The shift from products to goals

While many so-called ‘finfluencers’ and ‘investment gurus’ talk about the ‘best’ mutual fund or the next ‘hot’ asset class to generate short-term returns, the truth is that as more investors start focusing on their goals, their approach becomes less reactive to such biased narratives and more intentional towards their commitment to long-term goals. Whether it is retiring comfortably, funding a child’s education or buying a dream house, more investment portfolios are being built based on life goals rather than market tips.

2. Personalisation is key

No two investors are alike and neither should their portfolios be. A personalised investing process demands a deep understanding of an individual’s financial situation that would include his financial goals, investing expectations, household cash flows and risk behaviour. 

“All these factors would vary for each investor, and that is exactly why one-size-fits-all investing fails. For instance, a young investor in their first job has vastly different priorities than someone a few years from retirement. And even within the same demographic, no two people carry the same aspirations. Purpose-driven portfolios reflect that individuality,” says Gahlaut.

3. Focusing on the investing process

One of the most underrated shifts is a growing focus on the process of investing and not just the outcomes. This includes staying disciplined with SIPs, rebalancing when needed, cutting out clutter and knowing when not to act and stay passive. A sound investing process acts like a safety net during times of uncertainty. It builds trust, reduces emotional decision-making and creates a steadfast approach to long-term wealth creation.

4. Resilience is the new alpha

Many investors chase benchmarks and short-term performance. But there’s a growing acceptance that long-term success often comes from staying invested with clarity and discipline. Purpose-driven portfolios don’t avoid volatility, but they do help investors respond to it more calmly. When people understand why they’re invested, they are less likely to panic in times of uncertainty.

5. Behaviour is everything

Great investing isn’t just about the right funds or asset allocation. “Most people don’t fail because they picked the wrong fund, they fail because they acted on impulse, fear or greed. If your investing is borne out of a process that clearly defines purpose and goals, your response to market vagaries would be measured and would be in complete alignment to your long-term financial objectives,” says Gahlaut.