- Equity Markets witness 10-20% temporary declines almost every year
- Only 4 out of the last 44 calendar years, had intra-year declines of less than 10%
- Despite an intra-year decline of more than 10% almost every year, 3 out of 4 years ended with positive returns!
- Despite the markets having intra-year declines every year, 35 out of 44 years ended with positive returns - Temporary market declines of 30-60%, historically has occurred once every 7-10 years
- Every decade saw 1 or 2 sharp temporary falls of >30%
What should Investors do?
- Don't Panic
- Don't Stop SIPS
- Allocate more to your Mutual fund Units (staggered manner as no one knows the top and bottom in a market) and Equities if you have a strong conviction (and if the fall hasn't come in due to a fundamental reason)
- Keep the research hunger on and enjoy the Volatility
- What you do in bad times will create the journey of the good time!
- Keep a long-term view and invest (One Economic cycle)