Markets are volatile. That is their nature. They go up and then they go down, sometime in a small range, sometimes wildly.
Have a look at the following charts with Sensex movements over various time periods.
1 month movement chart
3 months Sensex chart
1 year Sensex chart
5 year Sensex chart
If you are struck by the red in your investment portfolio, go back to the beginning. Why did you invest? What investment period you had in mind then? What has changed except for the falling markets, which was a given in a any case?
A humble suggestion: stop looking at daily/weekly/monthly changes in your portfolio. That’s not good for a long term investor. How many times do you look at the speedometer when you are driving?
Did you know? There is no daily NAV or daily change option in Unovest portfolio tracker. At Unovest, you can track and invest in direct plans of mutual funds. Have you uploaded your mutual fund portfolio there?
A few of my mutual fund investments have fallen more than others. Why?
In a general market downturn, some stocks and related mutual funds will fall more than the others. Typically they are the mid and small cap funds. In an upturn, they would also seem to rise more than others.
If you are investing in mutual funds and you have not done a review for over a year, this would be a good time to to do it and make changes, if need be. Align your portfolio to your goals. Hopefully there will be less stress.
Should I book profits now?
You can. It depends upon what stage of your goal/investment cycle you are. If your investment horizon has reduced and you would prefer certainty of cash available for your real needs, please go ahead and book your profits.
However, don’t sell or book profits for the sake of it. Here’s more on this.
Is this a good time to invest?
It is always a good time to invest. Take into account your goals, your risk taking capacity and accordingly allocate your money to various investments.
If I invest today, what rate of return can I expect?
It depends on what you are investing in.
If it is Equity, it could be a few points above inflation rate. But be prepared to stay for a long time, at least 5 years and more.
With Fixed Income such as FD, PPF etc, it could be around inflation rate, though the tax rates could alter the final result.
If it is Gold, expect something similar to an FD but with the ups and downs similar to that of Equity. See the chart below.
If it is Cash, expect to lose the purchasing power of your money over time.
What will be the impact of Demonetisation?
Oh, yes the Demonetisation. What does that have to do with your portfolio? Nothing. Stay invested, keep investing.
How do I get rich?
While a lottery ticket is an option, it is highly uncertain. If you want to really get rich, you need to use your time and put in some effort. Begin by reading this.
Between you and me: What other questions do you have about investments?