Volatility is a part of investing. There is no need to get afraid of it. Volatility acts as small bumps in our investment journey.
- Control your emotions. Don’t Panic.
- Call your financial advisor and understand the reason behind the volatility.
- Don’t listen to the noise in the market. Stay focused on your goals.
- Look at the big picture:
The most common mistake which an investor does is to think about exiting current investments. Remember that you have invested for fulfilling the dreams of your loved ones and exiting current investments will compromise that objective.
- Use volatility as the opportunity:
Don’t stop your SIPs or STPs. This is an opportunity to accumulate more units through SIPs or STPs. So, let your SIP or STP run.
- This is the time to be greedy:
Remember the quote by Warren Buffet – As an investor, it is wise to be “Fearful when others are greedy and greedy when others are fearful.” So, this is the right time to top-up your investments through lumpsum and SIP mode.
And lastly, don’t forget that in the long term, market rewards disciplined and patient investors.