If you qualified in 2007..and started a SIP in 2008 in a long term equity fund, chances are your account is still in the red. Trying telling this kid ‘In the long run you will make money’. Even well qualified and older persons are finding it difficult to believe their ‘wealth creation strategy of doing a SIP’.
Sorry all kids who listened to me and did start a SIP…Not sure if anywhere in my blog I have said that 5 years is long term. If I have said that, sorry I have been really tested, and perhaps proved wrong.
Also the country is going through one extraordinarily tough period of time. The ruling party and the chief opposition party are extremely weak and have almost a zilch ability to hold an election now. So the political power (esp in many states) are with the regional parties. And this, they say, is the new normal.
Either the regulator or the courts are running the country. IRDA has ensured that NO pension plans are being sold, TRAI and the SC have made sure that fresh investment will not come in the telecom sector. So shares like SBI, Icici, Hdfc, and Kotak will languish and their insurance subsidiaries will plod.
Almost all the internal pricing (subsidised) has failed. Petrol prices cannot go up, railways cannot increase the fares, and fertiliser prices (and therefore foodgrains) are completely at the government’s mercy.
This is literally forcing all the money to go into FMCG (no regulator, ahoy!) – and the price earning ratios are in the stratosphere…..
The best thing in the equity markets are that a few good years WILL be followed by a few bad years. Now if you have sufferred the degrowth for 3 years, your being patient is perhaps the only thing to do.
I was talking to one of the best brains of Indian equity market – he had told me about 6 months back ‘the fmcg party is not yet over, new money continues to go there’.
Now I am not sure…but if you have your SIPs going, DO NOT INTERRUPT..
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