Rattled by volatile market? Keep calm and look long-term: Kulkarni

Swings are part of market cycles, yet staggered investments can turn corrections into opportunities, he says

- Shipra Singh

Historical market data shows that even sharp falls of 15-20% was followed by strong recoveries and rallies in India.

(MINT)

If you started your equity investment journey in the past year, chances are you have felt the jitters of a highly volatile market.

As an investor, looking at an unsteady portfolio may naturally raise doubts about your investment decision, but if history is anything to go by, such swings are part and parcel of a market cycle, and shouldn't impact a long-term investor. In fact, such setbacks often present more opportunities than failures.

In a fireside chat with Kailash Kulkarni, the chief executive officer (CEO) of HSBC Mutual Fund, spoke to investors at the Mint Money Festival about how to effectively rebalance risk and reward. The underlying theme of the conversation was that a patient, long-term investor, armed with discipline and staggered investment approach, can turn market corrections into opportunities, as India’s strong fundamentals continue to support sustained market growth.

“Volatility might feel like a new experience for investors who entered the markets in the past five years, but such fluctuations are not unusual,” said Kulkarni.