The Brutal Reality: Why Most Investors Are Losing Money

Over the past two years, we've watched countless investors lose their life savings because they made the same mistakes: going all-in on a few stocks, panicking in crashes, and chasing hyped but fundamentally weak stocks in bubbles.

The Real Problem?

Investing requires juggling multiple complex factors simultaneously - risk management, diversification, choosing the right assets, market rotation, news impact, timing, and performance tracking. While professional fund managers have teams of analysts, real-time data, and sophisticated models, retail investors rely on trading apps and gut feelings.

Remember the 2024–25 Market Crash?

Nifty and Sensex were hitting new all-time highs in October 2024. Retail participation was booming. Everyone thought we’re headed for another 2021-style bull run.

But smart money knew better.

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  FIIs were quietly pulling out.
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  Valuations were stretched across midcaps and smallcaps.
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  Global macro signals: oil, bond yields and wars were flashing red.

Then came the crash, triggered by global panic, war tensions, rising inflation in the US, and panic selling across Asia. In just weeks:

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  Midcaps dropped 20–30%
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  Retail portfolios were down massively
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  Panic turned into inaction, people froze

Yet, some smart investors avoided the worst of it. Why?

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  Took profits at the highs
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  Hedged or moved partially to safer assets
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  Didn’t ignore the macro signs
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  Had some risk strategy in place, even a simple stop-loss
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  Didn’t chase momentum in overpriced junk

That’s the difference. Not timing the market, but being informed and prepared.

Most investors lost because of lack of reaction when things changed.

"No exit plan, No diversification, No rotation when sectors flipped, No action when news hit"

You don’t need to be a pro, just need the right nudges at the right time.

That’s what Prysm AI does now.

It doesn’t tell you what to “believe”, it shows you the impact on your portfolio, based on real data, news, results, events, macro, sector trends, and more.

What Prysm AI Could Have Warned You:

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  "Your smallcap allocation is high. Market overheated. Consider trimming risk."
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  "Portfolio beta of 1.6 too high for current volatility. Rebalance needed."
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  "Global macro events raising risk. Watch out."

Missed Opportunities It Could’ve Helped You Catch:

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  Exiting Gensol before collapse
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  Rotating out of midcaps before crash
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  Buy infra/PSU banks post-Budget
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  Avoid earnings shocks (IndusInd, Divi’s Labs)

Here’s what you can still act on (June 2025)

🛢️ 1. Crude Oil Drops: Relief for Paints, Aviation

Crude has fallen sharply after Red Sea tensions eased and global supply resumed. This is a breather for margin-sensitive sectors like aviation, logistics, and chemicals (Indigo, Asian Paints, Pidilite).

✅ Ask Prysm AI:

“Which stocks in my portfolio benefit most from falling crude oil?”

This helps you rebalance before Q1 FY26 results disappoint.

⚠️ 2. Fed/RBI Rate Cut – Time to Rotate

The Fed just cut rates. It’s triggering: Growth stock rally, Rate-sensitive stock recovery (NBFCs, real estate), Bond yield drops → FMCG/consumption revival

✅ Ask Prysm AI:

“How does Fed rate cut impact my holdings?”

Rate cut

Get in before mutual funds rebalance.

🌍 Post-War Recovery: What's Next After Israel–Iran Ceasefire?

The ceasefire has cooled off defense stocks like HAL, BEL, Bharat Forge after a strong rally. But opportunities may now lie in: Rebuilding themes, Global supply chain realignment and Regional economic rebalancing

✅ Ask Prysm AI:

“What’s the post-war impact on my portfolio?”

Protect your profits, don’t be the last one holding.

You Can Also Ask These (Anytime)

Diversification

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  "How’s my sector and stock-level concentration risks and suggest specific rebalancing moves."

Performance

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  “Compare my portfolio’s return vs Nifty over the past year”
• •
  "Which stocks could be better replacements for the underperformers of my portfolio?"

Risk Exposure

• •
  “What’s my Sharpe ratio and risk score?”
• •
  "Access the Value at Risk (VaR) and volatility and tell Which lower-volatility stocks could be good alternatives for the stocks that do not justify their volatility?"
• •
  "Calculate my portfolio's maximum drawdown risk and suggest position sizing adjustments to limit losses to 15%"

Generic data-backed recommendations

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  “Any bad stocks I should trim today?”

News/Events Impact

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  “Which stocks in my portfolio are risky due to upcoming news/events?”

How To Get Started with Prysm AI

1. Go to prysm.fi/portfolio
2. Add your broker accounts
3. Open the “Chat with Prysm AI”.
4. Select your broker account or use “overall” and ask anything about your investments.

Prysm AI Features

Connect all your broker accounts and let AI manage the heavy lifting. Prysm gives you real-time P&L, diversification scores, red flag alerts, performance metrics like Sharpe ratio, and management commentary in plain English.

Think of it as having a senior portfolio manager available 24/7, except this one never gets tired, never has a bad day, and processes information faster than any human ever could.