We all are marching towards end of this pandemic. We are just started celebrating free movement, seeing upward growth in financial parameters. However, unfortunately the war begins between Russia and Ukraine. Due to this we all become victim of negative environment again. Market start falling with high speed and at the same time, investor’s heart bits running double the speed compare to speed of fall in the market. This is the reason why I selected this topic for writing the article.
Before enlighten on the topic, first I want to share here my own small story. I was investing in Mutual Fund through SIP for 3 to 4 years before 1st Pandemic. In that I suffer a loss of Rs.9,000/- approx. It is huge for me. However, instead of redemption, I keep continuing the investment as I don’t had any urgency that time. So, within a span of one and half year later my losses turn into sizable profit.
This is the first and very important Rule to follow. 70% to 80% of your panic will vanish if you follow this Rule. Pandemic, war in such type of scenario, you have to avoid reading or watching news as much as you can. Even if you can’t control yourself, try to read or watch them little bit later in the evening and not early in the morning.
As an investor you should follow consistent behaviour in your investment approach. Whatever may happen outside you should continue in your investment, if you don’t have any urgent requirement.
Look pandemic or war like situations as opportunity rather than losing anything.
Asking questions are always better than not asking. Do you own due diligence to understand any situation. Prepare a questionnaire and try to find answers to them on your own or if you can’t you can discuss them with your investment planner.
Risk averse means reluctant to take risk. So in situations like pandemic or war, continuing your investment without getting out from the market shows that you are a kind of risk aware person and not risk averse.
Whenever you start any new investment, you should be very clear about intention behind your investment. Your every investment should be linked to your short term and or long term goal or objective. It helps to keep you on the track in situations like pandemic or war.
In last two years of pandemic everyone here come to know that what requires for living and what not. So cut down you unnecessary spending which help to improve your saving and which ultimately help in maintaining or increasing your investment.
Last but very much important Rule and equally ignored one by many of investors; as they think that they are very smart enough to manage on their own. I don’t want to call such people as over smart; but if you are unable to handle your investment approach in the situations like pandemic or war then in such case it is good to have word or a discussion with these planners; so they would help you to remain calm, peaceful in such volatility.
I hope this small write-up help you in some way!
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