The market on Friday dropped. The news talked about how many lakh cr of value was eroded in the market and how we have reached the top until new triggers are found .. trigger which has to be increase in earnings.
When the markets are going up everyone is happy and the fund flows keep coming in. However as soon as the markets start dropping then everyone starts panicking .
Mutual fund investors need to understand that why they are investing is not for the short run.. it is for the longer term... it is for the next five - ten years. By looking at the mutual fund nav everyday it is not going to help.. We need to fill it shut it ( review it once a year ) and forget it.
As the fluctuations in the market happen more and more units can be bought as the markets drop.. in these times .. buy .. buy some more . That is the way to create wealth.
Our economy is down.. our growth rates are down to 5.6%... lowest in years.. but the structural changes will help to create the foundation for higher growth. We have a golden chance to create wealth in the next few years.
So don't let volatility scare you.. do a sip and make it your friend.
Understand the basics.. it's simplefinancialsense
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