Just imagine, when you take your ECG report, would you be happy to see fluctuating lines on the report or a straight flat line?? Any human being is considered to be alive only when ECG reading looking like one in the above picture.
Take for instance another example, is your life flat always? It is said Life is a roller coaster ride. There are some years of ecstasy, some stagnant years and some years test your patience and tenacity.
Be it Life or health, we always have courage to embrace the uncertainties and sail through. If we are strong to face this uncertain life, why get scared of market volatilities while investing. Just to tell you, If your goals are carefully thought and an asset allocation model is decided and fixed, why worry about intermittent volatility of markets/ value of investments and take decisions irrationally like switching investments from one to another, discontinuing a particular asset class OR even for that matter just sticking to one asset class.
Here in this blog, Iam trying to explain, why sticking to your plan and staying the course of investments deliver better returns rather than timing the market or treating the volatility as your enemy and exiting from the investments.
This above picture is indicative of what happened during last one decade in Indian Financial Markets. During 2008 to 2014, Sensex marginally grew, however SIP (systematic investment plan) returns were way better, so is the case during 2008 to 2011 & 2008 to 2017.
Systematic Investment Plan is like a recurring deposit you do in a bank. It is a tool by which one can take advantage of regular investments into Mutual funds. SIPs help you build your assets at a low cost, during volatile periods.
Embrace these market ups & downs as your friend and take benefit of this volatility in your wealth creation journey.