“Captivity never makes a Lion anything less”… The videos & images spread by irresponsible hands but his firm answer “Am I Suppose to Tell You This?” speaks very high about the person, his professionalism & his training. He was ready… like a soldier is … always. Here are a few of my thoughts that we can use in our line of work – Equity Investing.

WealthWisher salutes Wing Commander Abhinandan, IAF, his family & our leadership. I have always said – let’s not be taken or impressed by a Person… Let’s learn and get impressed by events, examples. The person may change but history remains permanent.

We faced or are facing a situation when mind – RAISES QUESTIONS. It can be satisfied with ANSWERS only.

As an advisor, I am also bombed (no comparison to what our forces did with terrorists) with questions on email, WhatsApp & phone? These are:

1. Should I stop my SIP?
2. Should we move to Debt?
3. Should we stop investing for a few months?
4. You said election should not be a reason to stop investing, what about WAR?
5. What should by my (your) strategy, if geopolitical tensions escalate. We’ve already answered this question in a previous post.

My Response “Am I suppose to tell you that… Investor?”

It is also true that the Indian markets have not seen a full-fledged war (Kargil categorized as a conflict). So yes many of us don’t know what will happen.

Wars are known to drink up economic growth… this is sure – looking at the wars and impact on other countries. But again can we forecast them?

Equity Investing

Equity investing itself demands preparedness like a war.

Can you or ARE YOU INVESTING without:

1. Knowing your Goals? Horizon, time in hand to achieve the goal, amount required to achieve the goal and what returns the goal (s) will be achieved?
2. Knowing your Risk Appetite?
3. You do not follow asset allocation?
4. Do you invest in fancy products aiming high returns?
5. Invest in low diversified and illiquid portfolio?
6. You have little or no knowledge of Asset properties (Volatility or Credit Risk)?

I am sure you have all this in your hand or your advisor is managing these for you.

So, don’t look for trouble when there ain’t one.

Every event or every news is not to be seen with the lens of your INVESTMENT PLAN. The world is not going to suit as per your Investment Needs.

Don’t lose focus

Do you know, yesterday the quarterly data suggested that Indian GDP slipped down to 6.6% from the last quarter of 7.1%? Many missed this simple – because we are too focused on frenzy.

Tough Times Demands Tough Action

What should you do when times are tough?

Display – Your ideal behavior.

In equity investing –

“More wealth has been lost by hasty actions rather than in-actions”.

But In-Actions are uncomfortable. It is hard to develop a thick skin and a peaceful mind.

So, let the time pass. Yes, equity markets will get bruised – hit, but they have one job – Showcase Corporate Growth.

And, they have been honest for the last 34 years, despite many events which hit sentiments & economy.

Here is a picture that shows that no one has lost investing in equity if you have invested for 10 Years Plus and very rarely in between 5 to 10 years.

To Sum Up

• Markets are volatile in the short term.
• As the investment horizon increases, the probability of loss goes down. E.g. the table shows that, in the last 39
  years of SENSEX, the likelihood of losing money for periods of 15 years or more has been nil.
• In the long run, markets have given CAGR of 17.1%; representing India’s nominal GDP growth (Real growth +
  inflation).
• SENSEX has compounded wealth at 17.1% over the long run. At this rate, an investment in the stock market
  has historically doubled every 4.5 years (which is equal to 330x).

Am I Suppose to Tell You That? 

Off Course I Am.. And I will… Yours WealthWisher.