Great funds for a volatile market

If you've been following the financial news, you must have read headlines screaming about the October bloodbath because the Sensex dropped 5.7 per cent. Even the traditionally stable BSE 100 TRI saw negative returns for the first time this year. In short, October was horrible for investors. But here's the thing: before you start panic-selling or socking away your money under the mattress, let's put things in perspective. Before October, the Sensex was actually giving us a sweet average return of 1.87 per cent every month in 2024. That's a year-to-date return of 10.17 per cent. Not too shabby! Time: your best friend in investing Think of market volatility like waves in the ocean. They look massive when you're close up, but from a plane flying high above, they appear tiny. That's exactly what happens with your investments over time. We analysed historical data of BSE 500 and found some results which might help you sleep better: With a 10-year investment horizon in BSE 500, you have a 94 per cent chance of earning returns between 8-20 per cent. But if you're investing for just one year? That chance drops to 23 per cent. What's more, if you stay invested for over seven years, there's a zero per cent chance of losing money. Moral of the story: give your investments TIME. Returns probability over different time horizons 1 year 3 years 5 years 7 years 10 years Less than 0% 21.31% 4.22% 1.28% 0.00% 0.00% 0-4% 9.18% 7.84% 6.93% 0.07% 0.00% 4-8% 9.69% 13.90% 14.16% 8.60% 5.77% 8-12% 10.01% 15.95% 22.54% 31.53% 38.41% 12-16%