{"id":14810,"date":"2019-02-25T12:46:02","date_gmt":"2019-02-25T07:16:02","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=14810"},"modified":"2019-11-07T14:29:04","modified_gmt":"2019-11-07T08:59:04","slug":"investments-in-losses-what-should-i-do","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/personal-finance\/investments-in-losses-what-should-i-do\/14810","title":{"rendered":"My investments are in losses, what should I do?"},"content":{"rendered":"

If you started investing in equity mutual funds some time within the last 2 years, it is likely that your investments would be in the red right now. It is likely that you would have seen high returns of these funds in 2017 and early 2018, only to be disappointed after you actually invested the money.<\/span><\/p>\n

So why have your mutual funds<\/a> disappointed you? More importantly, what should you do now?<\/span><\/p>\n

Markets go through phases<\/b><\/h4>\n

The question is not new. And the answer is nothing that you won\u2019t find in many other places. However, in times like these, it needs to be reiterated.<\/span><\/p>\n

It is common for equity markets to go through cycles. Equity markets are volatile. And by volatile, we mean that it doesn\u2019t always move in one direction. While it goes up at some points, it goes down at others. This happens because of a variety of factors, including global political and economic environment, domestic economic indicators, investor expectations, etc.<\/span><\/p>\n

Invest Now! <\/span><\/a><\/div>\n

Currently, the market is on a downward cycle. This is how the market has moved over the last year<\/span><\/p>\n\"Market<\/a>\n

As you can see, the mid and small cap indices are down quite a bit. Both these indices hit a peak in early 2018 and have since been falling. The Nifty Midcap 100 has lost 19% since January 2018 and the BSE Smallcap has lost 26%. This isn\u2019t the first time these segments have slipped so steeply. For the seasoned investors, this is just a phase that needs to be gone through. <\/span><\/p>\n

But for you newer investors who got into stock markets post 2014, this prolonged fall is new and scary. The years since 2014 saw very brief corrective phases of a 2-3 months in the midcap<\/a> and smallcap space from which recovery was swift and sharp. However, the ongoing fall is just one among others. \u00a0Here are a few other instances from the past 15 years<\/span><\/p>\n\"market<\/a>\n

In each of these instances, markets – especially the small and midcap segment – \u00a0fell by a large percentage in a span of few months. But these are specific periods of only the falls. When we put the last 15 years together in a single graph, we get this<\/span><\/p>\n\"Market<\/a>\n

As you can see from this graph, over a long period of time, the general trend remains upward. While the market goes through ups and downs, if you stay with the market long enough you will generate higher and inflation-beating returns. These downward phases are why we ask you to<\/span><\/p>\n