2018, 2019 and now 2020. Years are going by and there is no respite from bad news.
Latest: COVID-19 has finally been declared a pandemic by WHO, Indian Rupee is depreciating (reached 74+ as of this writing), Stock markets are correcting (10%+ in just last week) and your investment portfolio is in shambles.
If you started investing in mutual funds in the last 3 years, you are undergoing, what is called, a “TRIAL BY FIRE“.
You have been thrown at the deep end of the pool and all you have is a “sinking feeling”.
How does one deal with with this?
Ironically, there is so much written about it already that any more I say is going to read like verbal diarrhoea. And you don’t want that. I don’t want that.
I just want you to see this.
A horrible last one week with a 10%+ correction and may be more is on its way.
Oh my God, it has been happening every year with a new reason.
And yet, despite all the bad news, when you extend your horizon for a 5 year period, stock markets didn’t seem to care about any of the news. Even with all the falls, you are still looking at green.
Mind you I am not trying to raise hopes here. Likely, there is more pain coming up. However, if you live through this trial by fire, you are likely to come out ahead.
If that is your horizon, keep adding. Just don’t forget your rules, your asset allocation and your goals.