What to do in this down market?

 What to do in this down market?

Quite a few of you on this group, maybe seeing a market falling like this for the first time and it may be unnerving you and some of you may have started thinking if you have done the right thing .

Today I must say that this has happened so many times before not only for a day or week, but even for months together . 

So naturally to a new investor the most automatic question which comes to mind is what to do in this type of market situation. 

Usually, there are three types of actions which a person wants to do, and depending upon what kind of a person we are, which means that the action is actually in the mind much before we even take it.

To a very new investor who gets unnerved- the most natural reaction is to sell and run because he thinks that he has come to the wrong place and this is not his fault and the FD or maybe even the saving the account is much better.

To the second analogy, more experienced investor the thought comes that let me sell and wait to buy again at a lower level .

A third type of investor who still has money will like to put all at once to take the advantage of the situation.

But an even more seasoned investor will start making bulk purchases, but in steps and in addition to the SIPon STP that are undergoing . This is of course, the most equanimous  situation.

It’s A no-brainer that the last situation, obviously the best . 

In addition to this, then maybe other people like me who have been invested fully and have nothing more to invest. Such people would be like yogis who just sit  still and either watch things happening or don’t watch them at all but definitely don’t do anything at all. THIS IS CERTAINLY THE MOST DIFFICULT THING TO DO, BUT IT IS WHAT SHOULD BE DONE. 

But there are other things that a person can do as a investor apart from simply investing more or not investing at all..

1. They should review each and every Fund of their portfolio by opening out the list of all funds from Value research and checking how much their fund has lost in the last three months. They should go to a longer history and see how the fun has performed at different times like during the last election or the two lockdowns or in 2022 .

comparison with other funds and checking out the weather performance who have kept themselves in the top 25% will give them a fair idea of what is the nature and capacity of their fund and the fund managers.

2. They can also compare their funds with the index funds and the ETF funds of the same category and the benchmark. This will provide them with a self-made Plan for future.

3. We should check the performance of all the star funds and their managers which they had been listening to in the last two or three years like those of Quant , canara robecco, Motilal, and the others.

4. Lastly, the above observations will provide them with food for thought whether it should exit their star fund to move with the more seasoned and vanilla type performances or should they give more proportionality for their existing funds.

I GET LOT OF MESSAGES EVERY DAY ASKING ABOUT EVALUATING THE PORTFOLIO OR ASKING ME TO APPROVE THEIR FUND FOR INVESTMENT OR ANY OTHER ADVICE REGARDING FINANCE. but I am happy to say that this time even with the market falling somewhat no one has actually come with the question if they should sell most of them in fact, I’ve asked if they can go for bulk purchase purchases..

This is a sign of great maturity of the members of this group and I must commend group for that.

As you may have read so many books on finance, (which, fortunately I have not), you may have come across the famous words  That-  be  greedy when others are fearful.

So this is the time to apply that saying, however there is something weird that is happening this time and that is the people are not fearful at all.

Almost every day the mutual funds are making buys in 3 to 4000 crores.

This is again the immense faith of the people in the markets.

So Godspeed, all of you and a very happy Makar Sakranti Pongal and happy kite flying.