MARKET REACTION DURING THE CRISIS
Looking back to 2008, when there was a global downturn due to the sub-prime crisis, the Sensex halved to about 8,000-9,000 levels by the end of that year. Investors, who despite advice to the contrary, continued to stay invested through that volatile period would have benefited with the Sensex growing fourfold over the next decade (2008-2018).
Most of the market analysts believe, COVID-19 induced market fall is likely to be a temporary phenomenon, which was the case during earlier epidemic outbreaks also. See the chart and find the impact of each fall. If we look at the SARS outbreak in 2003 the US S&P 500 lost 3.6%, but gained 33% a year after the outbreak. The BSE Sensex lost about 10% during the period, but gained a huge 83% after the outbreak.
During the Zika outbreak between November 2015 and February 2016, it fell around 6%, but was up more than 21% a year after the outbreak. Also, the BSE Sensex, lost around 13% during the Zika outbreak but was up 24% a year later.
One most prevailing question currently ongoing is what should an investor do?
DO NOT STOP YOUR SIPs
Esta historia es de la edición April 2020 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 2020 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
How To Build And Maintain A Long-Term Portfolio
Building a robust long-term portfolio involves two steps. First, you must decide on your asset allocation-essentially the distribution of your investments across various asset classes such that it aligns with your financial goals and risk tolerance.
Learn The Magic Of Self-Talk
There is perpetual self-talk taking place inside all of us
Health Cover: How Family Floater health insurance plans work to your advantage?
The right amount of health insurance coverage can help you stay on track with your finances and life goals. In the absence of health insurance, one may be forced to delve into current investments, jeopardising ambitions such as children's education and home ownership.
Empowering Women: Understanding Inheritance Rights in India
In the intricate tapestry of India's diverse inheritance landscape, where the threads of religious laws weave a complex pattern, don't entrust your legacy to fate's capricious hand. Instead, wield the brush of certainty by crafting your will.
Protecting Those Who Matter Most: Understanding the Importance of Life Insurance for Our Loved Ones
Mr. Sanjiv Bajaj is the Jt. Chairman & MD, Bajaj Capital, building the platform for the Business leaders of the Financial Services and Advisory sector to exchange their vision, experience, and views on making the right financial decisions.
Unit-Linked Insurance Plans: How to make use of ULIPS to meet long-term goals?
Unit-linked insurance plans, or Ulips, are a good option if you wish to combine life insurance with savings for long-term goals in one financial plan.
Why Should One Consider Investing In A Large Cap Fund?
An investor’s ability to create wealth in the longterm is directly linked to how well they create an all-weather investment portfolio.
Meeting Medical Costs with Health Insurance Plans
A medical emergency can occur at any time and to any person.
Water: The Elixir of Life
If there is magic on the Planet Earth, it is contained in water - Loran Eiseley.
The 100 Crore Wealth Legacy! A Vision
Generating 100 crores from modest investments is feasible with a long-term outlook, though market timing remains elusive.