Are you upset when share market falls?

When you are going to invest in equity mutual funds, you know that the equity market is volatile. And, because of that, only equity funds are giving a better return than any other asset class in the long run.

Imagine a person investing for 15 to 20 years, and within the first 2-3 years, when the market falls, he/she panics and gets upset seeing their portfolio going down.

Why should one worry about such events when they have decided to invest for a longer duration?

It is because we are focusing on the wrong side. Yes, your portfolio will indeed go down, but on the other side, when the market falls, you are getting an opportunity to buy more units than before. So, instead of getting upset, one must use this kind of market fall as an opportunity to create wealth.

Instead of focusing on the short term, look for a longer-term. Look at our history, similar events have happened in the past, and the market has recovered from that crisis. If you look at the market in the short term, it has fallen 30 to 40% but, if you look into it in a 15 to 20-year view, it’s not the same.

Let me give you an example if you are going to a place by road there may be few bad roads in between, and because of that you will not cancel your journey, what will be the main focus is your destination which allows you to go through the tough situations like bad weather, break down, etc.

So, irrespective of the market behavior, your investment should be based on your goal and goal alone.