10% stock market broke whenever bumper returns in 1 year, testimony for 15 years – India tv hindi

Share Market: When there is a sharp decline in the stock market, nervousness among investors spreads. Many investors start making hasty decisions. In such a situation, a systematic investment plan (SIP) closure or the year’s goal is to withdraw your investment before that time. But in fact it is harmful for your financial health. The basic principle behind SIP is Cast averaging and is designed to work in investors’ interest during market instability. In fact, when you continue SIP at the lower market level, you can buy more units than the amount of monthly investment, as the net asset value (NAV) is low. This strategy ensures that when the market recovery comes, you get more benefit on these increased units. Baroda BNP Pariba Asset Management India CEO, Suresh Soni They are telling why investing in the market decline should continue and how when there is a big decline in the market, then bumper returns are available.

Why is it necessary to maintain investment?

A study done by Baroda BNP Pariba AMC suggests that in the last 2 decades, 13 such occasions came when the NSE Nifty 50 index declined by more than 10 per cent. On 11 of these occasions, the index gave positive returns a year later. In addition, the returns were in double digits on 9 of these occasions, while the average return was 21 percent. If you extend the deadline for 3 years for investment even after a 10 per cent fall, there was not a single example of negative returns.

(See the table below)

Remember Warren Buffett quota

This data reminiscent of the famous coat of giant Investor Warren Buffett: “When the other are scared, be greedy and when the other is greedy.” Selling in panic only increases the deficit, while making investment works in favor of the investor time and compounding. When there is panic in the market, we do not lose our wealth, but when we are afraid, we do damage to our money. By closing the SIP, the investor loses the opportunity to deposit the unit at the lower price. In addition, often the lower levels exit at the lower levels only increase the deficit. The result is that the investor misses the potential benefits from the next movement in the market.

How to deal with market fluctuations?

Although market fluctuations may be tension enhancing, it offers a golden opportunity for long-term investors to re-evaluate its portfolio. Use this fear productively to evaluate whether your current asset allocation is in line with your ability to take risks. Often, investors in bull markets ie fast markets invest others or by looking at the recent top performing categories. But every investor’s ability to take risk, liquidity needs and time limit vary. Correction in the market should serve as a warning to ensure that someone’s portfolio is prepared correctly to meet their own goals, risk -taking ability and liquidity needs.

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