What to do when the market keeps falling

Your portfolio tells a story. If the bleed is less than the market average, it's a good story, else you need to read this

- Monika Halan

Stock markets go up and down. Investors who enjoyed the 20% plus a year returns for four years ending September 2024 are seeing red in their one-year returns on the Sensex but returns of two years are still in the 10% plus range. Held for five years, the returns are an impressive 16% average annual. These see-saws are not something new. Those who saw their portfolios plunge a heart-stopping 40% over January to March 2020, saw them roar back to double and more over the next few years. Over its history, there have been over 19 instances when the Sensex dropped 6% in a day, but over 24 instances when it rose by 6% in a day. The Sensex's worst one-day fall was 13% in April 1992. But its best day was a one-day leap of 17% in May 2009.

Markets go up and down. But the color on your portfolio shows how you rode this horse. A horse is a horse. In this case, the horse is not wild but highly regulated. Now, it is up to the skill of the jockey to keep riding.