Investor: Kya lagata hai market? I am scared now. Full Mandi (Goli se dar nahi lagata sahab, ye market jab nichhe aata hai, dar to tab lagata hai) ߘ鰟賰
Advisor: Do you think that this type of correction is first time?
Investor: Yes.
Advisor: Listen, Sensex was corrected more than 10% many times in last 39 years. This is not new.
Investor: OMG.
Advisor: But remember.. Corrections are temporary and growth is permanent
Investor: How? ߤ䦬t;br />
Advisor : Every correction is an opportunity to invest* not to be scared.
Otherwise for an investor
1) Year 1992 - Sensex down by 54% in a year and up by 127% in next 1.5 yrs. In 1992 Rs. 100/- invested become Rs.46 in a year ( 54% down). After 1.5 years Rs. 46 become Rs.104/- ( 127%) up. It means Rs.100 invested become Rs.104/- after 2.5 Years.
2) Year 1996 - 40% down in 4 years and 115% in next year
Means Rs.100 become Rs.129/- after 5 years
3) Year 2000 - 56% down in my 1.5 years and 138% up next 2.5 years. Rs.100/- become 104.72 after 4 years
4) Year 2008 - 61% down in 1 year and 157% up in next 1.5 years Rs.100/- become 100.23 after 2.5 years
5) Year 2010 - 28% down in 1 year and 96% up in next 3 years Rs.100/- become 141.12 after 4 years.
So regular investment is the key.
Investor: Oho.. Meaning every correction is an opportunity to invest not to be scared. ߘবt;br />
Advisor: Remember Corrections are temporary and growth is permanent applicable to MUTUAL FUND INVESTMENT ALSO.