Dips in the market are common, but a correction that could wipe out 20-30% of your portfolio in a single month can shake the faith of many investors.
On this auspicious occasion of Diwali – investors should do one promise to themselves and that is to maintain faith and disciple in all circumstances, says Aashish Somaiyaa, CEO at White Oak Capital in ‘The Market Podcast’ with Moneycontrol.
Indian market witnessed a knee jerk reaction in March when benchmark indices fell to hit their 52-week low almost shattering the faith of many investors.
“In the last 6-9 months has been treacherous. In 2016-17-18, we saw investors committing more funds towards equity funds or SIPs, and in 2020 we saw a sharp decline,” says Somaiyaa.
For investors to create wealth, investors need faith and discipline. Now, if the faith and discipline come into play when NAV’s are going up and disappears when NAVs are going down then I think we have not learned the right lesson, he explains.
My message to investors on this Diwali is that if they want to create wealth is to keep investing and to maintain, discipline even in hard times.
“We are at the beginning of a new economic cycle and my sense is that in the next 3-5 years which could propel markets. Faith and discipline are important but they are more important when the going gets tough,” explains Somaiyaa.
(Tune into the podcast for more)
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