“So, with markets moving up and down, all this global news, everyone’s been asking me questions about what to do with their investments. So quick answers to three questions. One, should I panic because the world is going to end? No, don’t panic. Corrections are normal and the world genuinely doesn’t end. We’ve seen crisis after crisis, especially in my twenty years of investing,” the CEO said.
Don’t dread the red in markets. Some thoughts for new investors… pic.twitter.com/NvxPjHtMGz
— Radhika Gupta (@iRadhikaGupta) August 6, 2024
Focusing on exits from the mid and small-cap segments, the CEO advised investors not to rush out of their mid and small-cap investments. He recommended reviewing any mistakes once the situation stabilizes.
Even if you’ve made asset allocation mistakes and not all mid and small caps are mistakes, this is not the time to fix them. Let things calm down. You will have time to review your mistakes, but a storm is not the time to review your mistakes.”
Gupta also advised investors not to take excessive action, especially when feeling panicked. She emphasized that corrections are a normal part of the investing journey and encouraged investors to stay the course and remain invested.“Three, should I run to buy more equities? Not necessarily true. I always believe that don’t take too much action, especially when you’re panicked. If you’re comfortable, you can always buy more equities, but don’t feel the need to take a lot of action in a difficult situation,” She advised.
Gupta also mentioned, “I always say it’s called a correction, not crash because correction corrects our behaviour and it corrects our expectations. Corrections are part of the journey of investing. So hold tight and stay invested.”