Client : Sam, I want to withdraw money from mutual funds and I will sell all my equity portfolio.
Myself : Why?
Client : Don’t you watch media? Sensex down by 1500 points in 6 days.
Myself : So what?
Client : It will go down further.
Myself : Oh! So you are scared from SENSEX volatality.
Client : Hmm…
Myself : Assume a Businessman started any Business with initial capital of 10 Lakhs and presume in a 2 years’ time let’s say it is one Crore worth. What he will do?
Will he think of selling or profit booking?
Client : Never! Instead, he would like to think how can he mobilize more money so that his business will flourish.
Myself : Great! Any business will have the challenges and they will never look at newspaper or social media about keep worrying about it in terms of political uncertainty, regulations, global economy so on and so forth. Their focus is only how to navigate, if the situation comes but not eagerly looking for that situation.
Client : True.
Myself: Remember, Alignment is More Important !!!
No Business started with expiry date. Business is FOREVER. When we invest in equity mutual funds we are directly or indirectly involving in business and when we do it, we should align like what the businessmen are doing and more importantly what the businessmen are thinking.
Client : So you mean to say that..
In Business, Declines are Temporary, Advances are Permanent.
Just stay invested, stay the chosen course.
Happy Investing !