Why More Indians Are Choosing Gold ETFs Over Physical Gold
Most investors hate market crashes.
History shows they are the best moments to build wealth.
I looked at 25 years of Sensex crashes.
Here is what happened every single time.
Every crisis looked catastrophic at the time.
Yet the market eventually recovered , and moved to new highs.
Another way to see it:
If you invested ₹1 lac during the panic,
here’s roughly what it became.
- Dotcom crash : ₹30- 35 L today
- 2008 crisis : ₹9-10 L
- COVID crash : ₹3+ L
The biggest risk during crashes is not the fall.
It is investors exiting before the recovery.
The real problem:
Most investors wait for the perfect bottom.
But bottoms are visible only in hindsight.
No one knew:
• 2594 was the bottom after the dotcom bubble
• 8160 was the bottom in 2009 financial crisis
• 25638 was the bottom in COVID
So what should you do?
Follow this simple structure
- Define your annual investment goal in equity markets
- Invest 80% through SIP, this ensure discipline
- Keep 20% aside for market corrections, deploy gradually during dips.
This approach
- Reduces panic as dips are seen as opportunity
- Avoids the impossible task of timing bottoms
- Ensures consistent investing
- Captures market volatility
The truth is,
You don’t need to catch the bottom to build wealth.
You just need to buy when fear creates discounts.
Over long periods, markets reward discipline far more than prediction.
Originally published on LinkedIn
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