rockfella
Ambassador of Buzz
This is a good time to dump more if you can!
rockfella
Ambassador of Buzz
Don't be scared! Dump more if you can.
He plays in crores not lakhs.^^Lakhs ??
Rakesh Jhunjhunwala
you must have been investing very small amt for a short duration, a swing of around 10-20% is common during major market correction periods.
rockfella
Ambassador of Buzz
My gains dropped from 16L to 10L from Oct 2021 till yesterday. This is part of the game.
rockfella
Ambassador of Buzz
20 seems high. Covid drop was 30% approx. 2008 drop was 60%
You mean Lakhs? How long have you been doing sip?
It was assuming if one recently started investing at the heights of market & then a big fall come.
rockfella
Ambassador of Buzz
Yes. I started in nov/dec 2017 and went mental on it from day 1. I realized it was my only ticket to become financially stable. More than 70% of my salary goes in SIPs. Any leftover money 1 day before salary day is dumped (lumpsum) in the best performing fund in my portfolio. I got lucky in 2020. When the whole world was worried about job security/covid fear, my only focus was to work hard and invest like a madman. I had analyzed what happens to economies after global catastrophes like WW2, 2008 and many more. I got financial help from parents as well. I sold off 40 year old gold of our house when gold went up to Rs. 52500 (mid 2020) All cash was invested in MFs the same day. I went straight to to CDM (Cash deposit machine) of SBI and did lumpsums when I got home.... sensex was rapidly going up/recovering! I withdrew all possible PF/covid relief from office and invested it all. I witnessed (yes as I could not believe it) average gains of 1 L per month from march 2020 till Oct 2021 and then the market stabilized/drastically changed in oct 2021. No gains instead gains decreased. I am not panicking rather I am more aggressive again as markets are again low. I know end of day all we can expect is 15-18% returns over a decade. Fun fact : I went to Goa in oct 2020 with the interest money lol. When I returned after 10 days all money spent on that trip was fully recovered. It was that crazy during the end of 2020 up until Oct 2021. I am not married, I have no EMIs, no car, no liabilities.
Any drop above 3% is usually because of something major and it is usually in the news, usually not always. Russian Ukraine war dropped it by 4/5% on feb 24th.
Just want to add India is the largest fastest growing economy in the world and we don't realize it. Only 3-5% Indians invest VS 50% Americans. Imagine if even 20% of us believe in our growth potential and invest! It will be a win win for all.
PS: I know folks whose portfolios did not go negative even after the covid crash since they have been investing before than me. It is a matter of time in the market not timing the market. Keep 5-7 years minimum in mind to experience the benefits of investing. Real magic starts after a decade when your entire invested amount almost doubles in 2/3 years.
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Nice dedication & planning not to mention supportive parents, a rare combination.
rockfella
Ambassador of Buzz
Yes. See it did not happen overnight. I have been blabbering about investing/compounding interest and details at home since I started. Most of my life I have been a spendthrift which my parents knew very well. They noticed drastic changes in my spending habits after I started investing. What emboldened their trust in me was when my mom's ICICI fds matured and she wanted to put them in fd again. We logged in her ICICI bank account and I showed her % returns that went down when covid happened (march 2020 onwards...) IIRC 5 year FD ROI was around 3-4/5% and my mom was really shocked to see that. FDs and other so called safe investments are also market dependent as you know. That is when she told me to take the money and invest. This was followed by my father as well. He also invested some with his PAN and his returns even today are impressive. After some time gold prices went up. I told her about it and recommended selling what we had. She instantly agreed. Heck I convinced my parents but my doubting thomas younger bro had a good amount rotting in his savings account.. just like everyone else he was skeptical to invest at that time.. when he saw my gains in Jan/feb 2021 he changed his mind finally and started investing recently... day before yesterday both his and his wife's portfolio went in the negative (Ukraine Russia war) and was not happy lol. Luckily the market rebounded on feb 25th and it is okay now. I simply followed what Warren Buffet says: Be fearful when others are greedy, and greedy when others are fearful. These days people are fearful so it is investing time lol. March 2020 the world was petrified and I used all my might to milk this opportunity. I tried to convince many friends to sell extra properties they had/dump their savings in the market but no-one did it for some reason or the other.Nice dedication & planning not to mention supportive parents, a rare combination.
PS: If I had used the same amount to buy Bajaj Finance stocks my gains would have been a lot more lol.
I can tell you there are many ppl who made lakhs by dealing in intraday/futures options in market within a few days/weeks only to lose heavily later to end up with net profit close to zero or even negative. This is also why there is only one Rakesh Jhunjhunwala because what makes such ppl different is their ability to keep majority of their profits from the market & not end up with net profit close to zero over the years.
The thing is, you need extreme discipline to realize profits from share market especially if profits are huge & duration is short & such discipline is missing from new investors & even many experienced investors.
rockfella
Ambassador of Buzz
Yes. The biggest broker of India Nikhil Kamath (Zerodha) states 90% people loose 90% capital within 90 days when they start trading. Even now I don't think about trading anyday soon. I know a few who have been investing in stocks since 20+ years and they talk like they know it all. When I asked them their overall investment VS gains they have made over those years they say it is negative 10+ lakhs. The stocks they invested in are those hyped ones Reliance and PC Jewelers. We all know what PC Jewelers did! Fun fact: Only 2% investors continue investing after 10 years. Rest withdraw before the real fun begins.
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mitraark
Decrepit
Started a new monthly SIP for a Nifty Index MF worth 1/8 of my salary starting today. Will do additional lumpsum investments using my fixed deposit funds if there are 5-10%drops due to the Ukranian crisis.
rockfella
Ambassador of Buzz
Google it you will find a lot of negative stories. My cousin lost all his savings doing intraday/future/options lol. Funny thing is even if had kept the money in PPF he would be far better than what financial situation he is right now. I have seen portfolios in negative 50 lakhs beyond recovery. A friend of mine invested 20 lakhs in one single lumpsum amount in 2 funds. He is not at a loss but he barely gained 2 lakhs post covid on 20 lakhs. Even if one has a huge amount, it is advisable to divide the total amount in 12-24 month SIPs to safe guard situations like covid/2008/anything.
rockfella
Ambassador of Buzz
Do it at 5% too. Don't wait for 10. Lots of folks wait for rock bottom then miss out.
Zangetsu
I am the master of my Fate.
That's a huge gamble you did buddy. High Risk = High Reward
TheSloth
The Slowest One
I understand now that trading is very risky and how one loses lot of money there. Any negative stories from other kind of investments like MF, PPF, FD, Gold, Bonds or something similar? Just asking here to learn things about dos-and-donts. There must be some points which everyone will warn against.