Monday, July 23, 2018

Stay invested in falling market, and never panic.

As I always insist that investors should always stay invested in falling markets,as it is the best time to participate in the Market, and should not have the feeling of Panic, why I am saying this right  now?, Because since January 2018 Correction is going on in Market, Prominently in Mid caps and Small caps, And Investors are loosing their faith in Market, as most of Mutual funds returns are negative because of correction. But everybody forgot that 2017 was a historical year in market, as Market has given very good returns, especially in  Mid caps and Small caps, 40% to 60% respectively.So after giving so much good returns, Correction is imminent,and investors should welcome the correction in-spite of doing panic in Market. Investors must have just trust in Indian Economy which is still fastest growing Economy in the World. As 40% kind of returns are not realistic returns, so Market always set off this kind of returns by doing Price or Time wise  correction just. As market average Return is 15% to 17% on CAGR basis. Investors must stick with their Goals, and stay invested in The Market because it is the only asset class which can beat inflation and give us good real rate of return with Tax efficiency.Investors should not time the market, because it is very difficult task, just invest for long term.As being a Financial Expert, You would ask me, what will happen in the Market in near term, My answer would be I DO NOT KNOW. But if you ask to me for Next 10 years, My answer is very bullish, that definitely Market would be very much upside from here due to expansion in size of Economy. Market do not give always northward kind of returns in every year.For Example

In March  2004 Sensex was @ 5591

In March   2008 Sensex was @ 15644

In March 2009 Sensex was @  9709

In one year, sharp correction had been seen due to Global recession and also due to sharp gain in last four years,

In March 2014 Sensex was @ 22386 

In March 2017 Sensex was @30000 

So in last 13 years Sensex has reached from 6000 to 30000, Five times it is , but in between, there were lot of corrections also seen, Only who has made money, who stayed invested in Falling markets
So have faith in Indian Economy and stay invested. India is Sixth largest Economy in the World as of now, and soon it is going to be on fifth no.So be participate in Indian Economy via investing.

Best Regards
Mohit jagga
Financial Adviser