Since the topic has veered towards MFs, here’s a bit of an anecdote. My wife had started an SIP in a couple of funds for 12 months, sometime around Jan 2007. The installments ended around Dec 2007/Jan 2008. The crash happened. She did absolutely nothing. Neither did she book out, nor add.
At around the beginning of 2018, her money had more than tripled in one of the funds (HDFC Capital Builder, iinm). In another, she had a gain of about 50% (some international fund run by Aditya Birla group, iinm). So no capital loss in either case.
To me, she had made her investments at the worst possible stage, & yet, survived. This alone gave me the confidence to invest in MFs for the long term. (Even I had been raised to think that equities are a gambling den & FD is the only way).
If I’ve made an error of some sort - maybe by not considering relevant parameters - please do point them out. Because I’m open to suggestions. As stated above, I’ve made the leap (of faith) from FDs to MFs, & if this faith is based on some sort of fallacy, I’d like to genuinely listen.
Good day!