What The Doctor Ordered

It used to be that the main skill that an investor needed was to be able to tell good investments from bad. However, it has become amply clear over the last four years that managing one’s own reactions to panic and crisis is just as important, if not more so. All indications and data suggests that the number of investors who are investing in equity through the SIP route has grown substantially over the last few years. However, times like the current ones are a potential source of damage in this style of investing. Whenever, there is a spate of negative news, or the stocks markets falls sharply over a short period, a certain proportion of investors cancel or pause their SIPs, or don’t extend them if the initial period comes t

This article was originally published on November 28, 2011.