Hello Readers!

We hope that you are staying at home and keeping yourself safe from COVID-19.

With Equity funds performing low day-by-day and seeing low or negative returns from your portfolio, it is natural for you to be anxious towards your investment. The anxiety of yours forces you to check your portfolio repeatedly, which ultimately adds more fear of losing your money to your anxiety. 

Well, we completely understand your anxiety towards your Equity Investment. We understand your fear after seeing that your equity fund investment is not working towards creating wealth for you. At this time, you need to understand that equity risk is very high in the short term, but it is also the most viable form of investment to create wealth in the long term.

So instead of panicking yourself and feel bad about your investment returns today, focus on these three things, which can affect your future financial outcome.

  1. How much risk you can handle?

Well, advisers advise selecting your fund as per your goal, as this helps you to cope up with your investments at the time of market volatility. If you have skipped this step, at the time of investment start and now it is becoming difficult for you to cope up with this correction and is unable to manage your falling returns then it would be good for you if you re-analyze your risk profile and then lower your allocation to an Equity fund. 

In case if you think this correction in the market has eaten up all your savings leaving it difficult for you to achieve your near-term goals, then also you need to reassess your allocation to an equity fund, but please don’t think to redeem your Equity fund investment at this time as you will only end at loss. 

A lower ability to manage equity risk means having a lower allocation to equity with the outcome of increasing the time horizon of your goal or having a more reasonable financial objective for goals. 

In case if you can handle this market volatility, or this correction in the market is not disturbing you much, then you should continue as it is, once the market regains itself, you will receive good returns from your investment.

  1. “Saving Is Necessary” An Important Lesson To Learn

Every event that happens whether it is natural or man-made, shows us that how it can affect the global economy, your country’s economy and your cash inflows. Thus for any individual when they start earning, the very first lesson that they must learn is “saving from the first day”. Save and invest for the future. 

To save money, you should control your expenses, do not spend on things that you do not need, you should remember- “do not save what you have after spending, spend what you have left after saving”.

  1. Make Your Goal Your Hero

Always invest in a mutual fund with a goal or an objective, and if you haven’t done it till now then do it now. Goal planning helps you save from anxiety in times like this. If you have a goal with a defined timeline, your actions will move accordingly. 

Advisors say if you have one or two years left to achieve your goal then you should consider taking out your investment from the risk associated market-linked Equity fund investments and preserve them at a safe place say your bank account. This helps you get financial help at the time you require it for your goals. 

Being anxious and panicking in times like this is natural for any investor but your anxiety can be harmful and may often lead you to irreversible actions with your investment. It’s would be good if you look at ways or strategies which will help you make beneficial changes in your investment to bring positive outcomes in your future financial life rather than getting panicked and checking your portfolio again and again. 

You can contact us at Shri Ashutosh Securities Pvt Ltd., for any assistance, we are here to help you in any way possible.

Happy Investing!


(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).