Will you stay invested or withdraw if the market falls 20%? Here's some perspective
India's biggest bull market was between 2003 - 2007. In this period, the market generated a staggering 214% return on Nifty. Which is ~35% of CAGR on large caps for 5 years.
But did everyone make monies?
NO! Many sold their investments & could not stay invested because they got scared!
Here's the data for the intra year market fall,
2003 markets fell 14%
2004 markets fell 27%
2005 markets fell 13%
2006 markets fell 29%
2007 markets fell 15%
Markets falling 15-20% intra year is a normal phenomenon. If you sold your investments in 2003 because the markets fell 14%, you would have not been able to make the 214%. Only investors who stay invested or add more during such falls with a longer term view are the ones who have made wealth.
Stay invested
