- My returns have come down
- How long will this continue
- I want to stop my SIP
- I want to restructure my portfolio
- I want to close my investment account
Since last six months, with the market trend & big swings (up & downs), we all are getting these thoughts. Everyday when we hear new stories, our thoughts get compounded further, what do I do now?
Well for starters, JUST STAY PUT, do not react.
This is the first mistake each one of us get into, i.e. during a panic situation, & on hearsay, we react.
Equity investments, whether its Mutual Funds or direct, are strictly meant for minimum three to five years duration, or for medium to long term goals (five years+).And in this period, one can except market to behave volatile with big swings, based on factors which no one can control or even predict.
If we take Air travel between Mumbai to Delhi as parallel, where on a two-hour flight, when aircraft hits turbulent winds & starts to shake (which always happens), what do we do?
- We sit back with seat-belt on, or look at the exit gate to jump?
“Only buy something, that you’d be perfectly happy to hold, if the market shut down for 10 years.”
– by Warren Buffet; arguably the greatest investor of all time.
The current market will remain moderate to highly volatile, for at least one year to come, or till the mid-2019 elections. Not just the domestic concerns, but international factors will also dominate this volatile phase, which includes factors like crude oil, US relations with Iran, N. Korea etc.
But it’s the right time to review your entire equity portfolio or existing SIP’s, with your advisors, not just for performance, but other factors (regulatory change), like scheme name change, scheme mergers & mid/small cap scheme reallocation with each fund house.