Is it wise to start equity investing during a market downturn?

"I want to start investing in equity, but I'm hesitant because the market has been falling for the past few weeks. What should I do?", one of our readers asked recently. It's only natural. After all, the thought of putting your money into equity when markets seem unpredictable can feel intimidating. But allow history to assuage your fears. Pull up any record and you will find the Sensex has always roared back to life even after major drawdowns. The current market volatility, then, is barely a match. Major Sensex declines and following comebacks Date Sensex fall from peak (%) Bearish phase Recovery time Five-year returns from the low (%) March 28, 1988 -41 1 year 9 months 6 months 43 January 25, 1991 -39 3 months 6 months 24 April 26, 1993 -54 1 year 1 year 4 months 15 December 04, 1996 -41 2 years 3 months 2 years 7 months 4 September 21, 2001 -56 1 year 7 months 2 years 4 months 36 May 17, 2004 -27 4 months 6 months 22 J

This article was originally published on December 31, 2024.