Stock, mutual fund portfolio bleeding due to market correction? The founder of Zerodha has a suggestion

Amid weak equity markets following the outbreak of the Russian-Ukrainian war, stock and mutual fund portfolios are bleeding profusely. Although it has been more than 15 weeks since Russia invaded Ukraine, markets have yet to stabilize. In such a situation, whenever there is a relief rally, people start guessing that the market is bottoming out and start expecting a huge rally in the next session. However, for these people, Zerodha founder Nikhil Kamath has a suggestion. In one of his earlier tweets, Nikhil Kamath suggests that when things aren’t going your way, it’s best to stay away from the market.

Zerodha Founder Nikhil Kamath’s tweet talking about the current market scenario says, “9 times out of 10, when things are not going your way, doing nothing is the best thing. In life and in markets…”

Echoing Nikhil Kamath’s suggestion, Sunil Damania, Chief Investment Officer at MarketsMojo, said, “Investors have struggled over the past few months. However, they may still have to be patient and endure a few more months. But after that, the Indian market might be on the verge of making some smart gains. Just keep your stock investment. Don’t make any decisions based on fear and emotions. The Indian stock market is creating an excellent basis for the next rally. If you want to surf the rally, make sure you don’t set up in a hurry.”

Year-to-date, the Nifty 50 index has lost around 10.70%, while the BSE Sensex has fallen 11%. In 2022, the BSE Mid-Cap index fell by more than 13%, while the Small-cap index lost around 16% this year. This has had a huge impact on the stock and mutual fund portfolio of various investors.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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Dolores W. Simon