Correction in Share Market a Good Idea to pull up again

pull up again & get ready for the rollercoaster. Many people investing in
Mutual Funds, Secondary market retaliate to this view. As per them, Correction
in the em style=””span style=”” /span/ema href=””strong style=””em style=””share market /em/strong/astrong style=””em style=””span style=”” /span/em/strongleads to lower down their portfolio or
drag down their NAV. Theoretically, even technically I’m told, and corrections
adjust equity prices to their actual value or support levels. In reality, it’s
much simple than that./p

p Normal” style=”text-align: justify;”>Prices go down because of
speculator reactions to expectations of news, speculator reactions to actual
news, and investor profit taking. The two former “becauses” are more
potent than ever before because there is more self-directed money out there
than ever before. And therein lays the core of correctional beauty!

take profits but often take losses. Investors in Mutual funds do not realize
that if their NAV is dragging down, the units they have in their portfolio is
having an opposite impact that is the units in their portfolio increases. One
can have a positive effect if the following are being considered in Correction

p Normal” style=”text-align: justify;”>
* Resist the urge to decrease your Equity allocation because you expect
a further fall in stock prices. That would be an attempt to time the market,
which is (rather obviously) impossible. Asset Allocation decisions should have
nothing to do with share market expectations.

been a correction that has not proven to be a buying opportunity, so start
collecting a diverse group of high quality, dividend paying, low priced

p Normal” style=”text-align: justify;”>
* Don’t hoard that “smart cash” you accumulated during the
last rally, and don’t look back and get yourself agitated because you might buy
some issues too soon. There are no crystal balls, and no place for hindsight in
an investment strategy. Buying too soon, in the right portfolio percentage, is
nearly as important to long-term investment success as selling too soon is
during rallies.

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