The sudden correction in the market came unannounced and its future is unpredictable. And, amidst this correction do you find yourself hanging with your long-term fund and your plan to take it out this year to fulfil your desire for which you had been investing for so long? The present market condition has caught the wrong foot of many investors.
In case you are an investor caught in this situation, you have two options to act on –
- Take out whatever left money you have
- Or, stretch your time of investment and thus stretch the time you reach your goal.
Being an investment consultant we would not suggest taking out your investment when you are incurring losses, rather wait for the market to regain itself and then take your money out.
It would be wise to stretch your time for some more –
The best bet for you right now is to stretch the timeline of your goal. For example, let’s say you are investing in equity mutual funds since January 2010 and you wanted to take out the money on January 2020 to buy your dream house but right now you probably are looking at the big gap in the money you thought you will be making due to Corona in the market.
Don’t give up right now, wait for the right time and then take your money out.
What you can do in this situation?
You have two options in this case either to lessen the amount you earlier wanted to fulfil your goal or to postpone it for a while. For example, let’s say this year you wanted to send your child for higher education and thus you were building a corpus for it but now there is a big hole in your investment. Either you can wait for another year to send your child or opt for colleges whose fee is less.
Happy Investing
Mutual Fund is subject to market risk, please read offer related document carefully before investing.