Kamath said, “For investors who start investing after the epidemic, this is the first real market reform. The markets are cyclic, and our markets have moved from the end of 2020, this fall was inevitable.”
There have been reports that many investors have paused on their systematic investment plans (SIPs) for the last five months.
In January, the SIP stoppage ratio, which is a closed or terminated SIP against new registrations – has increased to 109%since April last year, according to JM Financial.
Kamath says this is a wrong step regardless of the direction of the market because the average investment during the period.
“I don’t know how good the data is, but it seems that the number of investors shuts off their SIP. This is wrong to do this. The SIP helps you do what you do to average your investments in the various market cycles.”
Kamath gave an example, where if an investor is more than an average of 2021, now, he was going down.
“In 2020, the larger, middle and small caps dropped by 25-40% but then increased 200-400%. If you were terrified, you would have missed the rebound. As long as you invest in the right funds regularly, the opportunities for your long-term success,” Kamatha Social Media said.
Another mistake to avoid is leverage, with other market experts agree. Playing with excessive gains in corrective markets can be cleansed in capital.
“There is no shortage of business to borrow money for you to invest.
Kamath, which regularly transmits its views in the market, said that investors are better to invest every month and do something useful in life than to stay away from dooms and darkness.
A few days ago, Kamath commented for the first time on market reforms, saying he was leading a huge reduction in trade and volumes. “This is pushing the D-Growth for the first time since its onset of a true market circular.”
(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)
(Now you can subscribe to our Etmarkets WhatsApp channel)