I am sure most people are struggling with this and several other questions, has all the correction taken place? Is there more downside? Do I continue my SIP, since I have already lost so much and several others?

Now look at the other side, do you really believe that markets will continue to move down perpetually? Has anyone ever been able to say for certainty when markets are at their bottom or for that matter at top? Under normal times, did you not always want to buy at a “lower price”, were you not always looking for a better, or to say correctly, lower price while buying, and if so Why? Because you were looking for higher profits, as markets moved up.
If all of above is correct, then what are thinking now? Why is there all this nervousness? Are you not getting your favourite investments at a real good bargain, has this fall not clearly separated boys from men, has it not helped you identify investments that have withstood the onslaught of bad news? If you now know what’s good, really good and same is also available at a great bargain price, and markets are going to go back up for sure, it may take some time, then is it not correct to go and invest?

Think about another aspect, is it time to stop your regular investment? Agree, you are seeing some erosion of you value but if you get out, will you recover the lost money? Anxiety at this time is natural, but investments are done for long term, for this reason, so that fluctuations over short period are evened out, and as markets recover, so does investments.
So, what should one do at these times, that’s the right question to ask? And the answer is to review your investments, review your asset allocation and identify items that need to be weeded out and items that need to be added. In sequence of priority, review asset allocation, see that you have your risks spread out over different asset class, there is adequate provision for emergencies, if there are any investments which look weak and show continued weakness because of external factors, move out of those, it’s time to seek expert opinion and take corrective action.

To conclude, and deep market correction, because of external factors, is time to look for best investments at bargain price, stay invested and seek expert opinion to review your asset allocation and individual investments and switch weak once by the strong candidates. Continue to put money into leaders…. the mantra for creating wealth. Happy Investing….

Kriti Suri

Founder – Women Talk Money

Certified Financial Advisor