Hello!
Yesterday stock market corrected by almost 800pts and experienced one of the biggest one-day falls in history. Overall the market has corrected by 11% since 29th Aug 2018.(New Peak)
You may also see a below average or negative return on your portfolio.
I can completely understand you feeling anxious, scared and worried about your money.
But let me assure you something….this is normal behavior of the stock market. In the shorter term, extreme volatility is natural in Capital Markets. We expect markets to correct furthermore.
Why is all of this happening?
Majorly capital markets are affected by two things- global turmoil or domestic unrest. This time it is the global turmoil. Crude/Oil prices rising day after day, rupee falling day after day, Foreign Investors withdrawing money from Indian markets each day etc.
We expect this to continue for some more time. This Market fall may stabilize in some time but such falls will be seen time and again.
So what should you do as Investors?
Asset Allocation: You should look at your overall portfolio of money & check if you have sufficient funds kept aside in safer basket to sustain this volatility.
In short, if you are not dependent on the stock market or equity MF investment for your day to day requirements or short-term goals, you need not worry.
And if you have extra money in your bank account, INVEST …INVEST….. INVEST!!
There has never been a greater opportunity to buy MF unit than in a Market Fall. Invest more in a lump sum or by SIP. The more SIPs fall in this market the bigger your portfolio will grow in the coming years.
What do you do about your existing MF portfolio showing below average or Negative returns?
Nothing!! 🙂
We have chosen the best of funds, now we need to sit tight and not worry during short-term volatility.
We have invested in the growth of companies, not in the growth of capital markets. No matter what is happening in the market, our companies continue to build profits year after year. Those profits will also be passed on to you eventually.
So, Sit tight and enjoy the volatile ride!
PS: Please give us a call if you need further guidance.