These are volatile times, and investors often panic. How should they navigate this–stay put or sell as fear sets in?
Annual 10-12% pullbacks are normal and occur every year; in hindsight, these dips from recent highs are actually investment opportunities. Most investors fail by trying to time the market, which results in them not being optimally invested. Looking at the decade from 2016 to 2025, despite major domestic and global events like demonetization, goods and services tax (GST), bank non-performing assets (NPAs), the IL&FS fiasco, Covid and various wars, the Nifty has consistently ended in the green. The market delivered a 13% CAGR during this period, proving that time spent in equity markets is more important than trying to time the market.
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