Kya Mutual Fund Sahi Hai?
Mutual funds are subject to market risk. Why are a few market experts suddenly so worried about retail investors and their investments in small- and mid-cap mutual funds? Those who were relentlessly promoting such mutual funds have now started highlighting market risks. Is there truly a risk now, or are they being overcautious—or is there a hidden agenda?
2/18/20251 min read
If you are an existing investor in a mutual fund, you might be confused about whether you should stop your SIP investment or continue as it is. Some market experts give conflicting statements that may confuse you about your existing investment strategy.
So far, you have shown maturity by not worrying about market fluctuations. You have stayed committed to your investment path and have been rewarded with double-digit returns. I believe you should maintain the same approach. Do not pay attention to the noise around you, and mark my words—you will be in a better position.
Such situations test your patience. Those who let emotions take over and panic in today's environment will exit the market, while those who stay strong and endure will earn handsome returns. In a way, the market will filter out weaker investors, creating a bottom, and those who continue investing will benefit from better valuations due to their long-term perspective.
As a mutual fund holder, maintain a long-term investment horizon of at least 10 years, and you will see favorable results. Do not panic because of some market pundits' statements.
Take a deep breath and stay calm. The most valuable advice is to be a lazy investor—don't even check your portfolio regularly. Just review it once a year. In my opinion, this is the right time to increase your investment rather than stop it.
Remember the golden advice given by Warren Buffett: "Be fearful when others are greedy and be greedy when others are fearful."