Hyderabad: Though the stock market faces many ups and downs it's the best option for investments as it yet again recovers and gives us a chance to reap rich dividends. As usual after the Covid pandemic and now the Russia-Ukraine war something or other continues to have an impact on the stock market from time to time. Hence, the result is fluctuations in share prices. However, it does not make sense to rush to withdraw an investment during such testing times while it is better to stay in the market to see the expected gains.
The stock market sees a lot of good and bad things like depression, pandemics, wars and political upheavals, but it will continue to regain strength. Even if we lose investments temporarily, they will be ready to record lifetime gains again in the long run. Therefore, we must overcome the fear of war and other concerns and we should continue the investment.
It is a fact that the market is volatile, but this should not be the only reason to withdraw investments. Don’t forget to be prepared for some corrections while investing. Investments should be withdrawn if there is a compelling reason to achieve your goal otherwise if you have shares in companies in Russia and Ukraine you may come out. Moreover, you should not withdraw shares for small reasons. Keep in mind that if the investments in your Demat account appear in red it does not mean that they remain permanently. If you are afraid .. you will lose long term gains. So, you need to keep investing until your goals are achieved.
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We should not invest in a single scheme but must show variations regardless of circumstances by investing in Provident Fund, real estate, gold, bonds, bank deposits, stocks and mutual funds. We should have a different investment strategy based on your financial goals. We will become financially strong only when there is the right mix of investments based on our goal.
Your financial goals will guide you through uncertain times and decide whether to continue investment or not. For instance, you want to invest in mutual funds for five years through a Systematic Investment Plan (SIP). Three years later came unexpected consequences such as war. Since you still have two years to go, the chances of the investment recovering are high. Moreover, if we withdraw investment in the middle then we are bound to lose the returns, which we are about to get after maturity. As we are aware of the fact that equity markets will record losses during any global crisis. So, we as investors should consider this as a natural process and should not make changes to our investments list. The decision should be taken with investment principles and understanding. Care must be taken not to make small mistakes, which will cost you dearer.
