As people are staring at losses from mutual funds, the truth is that mutual funds never give losses to its investors. It is the investors who create those loses due to impatience. Staying invested throughout a cycle always helps investors take profits out of their investments. Any crisis gets eased out over time and we get back to normal. If an investor has panicked in 2008 after investing in 2007, he would have booked 60% loses. Instead, if he had added another 50% to his investment when the market was down & stayed invested for 10 years. He would have made 200% returns.
A similar condition exists now, Corona has locked the whole world. It will get back to normal and SENSEX will reach 1 lakh in 10 years.
It is time now to add to your investments as it is available cheap now. It will help you get another 200% returns in the next 10 years.
Notional loses made in an aggressive asset cannot be made good from a conservative asset like FD. Today if you remove from Mutual funds and move to FD, it will take 10 years to get back the losses. Rather stay invested, you will double your investment in the same period.
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