Index is just 3.5-4% down from ATH but portfolio still down by 18%.
Is it only with me?
How could you compare this? Even Nifty and Sensex are different from each other, with Nifty having 20 different stocks. Even if one has invested in only Nifty stocks but if the invested stocks have low weightage in the index, due to the high weightage stocks going up, Nifty goes up but the PF will be down.
Where financial literacy is easy available, it is a foolish thing for a common man ( someone whose immediate liquid savings is only in lakhs ) to be investing in mutual funds, individual stocks, bonds, etc. The only capital market investment should be in the nifty50 etf / nifty bees. Not considering ELSS investments for reducing tax liability.
You must be concentrated in small caps.
LC, MC and SC all have varied cycles, usually beginning with LC recovery and SC rally the last.
Also price destruction in LC is far less than the MC and SC in that order.
50% drop from ATH in SC was very obvious in June.
And if you invested only after oct-2021 then its more evident. If your PF is 5 years old, it shouldn’t be a net problem. Ofc Holding returns in portals are based on current holdings only.
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I have remained invested for very long now. So not very sure if I have underperformed or not. I am in good green.
I bought in staggered form from 18600 to 17000 during the fall. And it’s a mix of large & small caps
When the interest in equity returns, gold does not move. As gold by itself does not serve any purpose, and acts mostly as a safe haven, it is not prone to changes both good or bad, which happen in other asset classes.
I bought some units in Goldbees, but did not buy more as the markets are rising.
For as long as I have green colour showing up in my account, I don’t care how I am doing.
These things happen, it’s part of the game. All you need to focus on is risk techniques and if you have the green signal. You will lose eventually, but what matters most is how you make up for it.
It is alright to be in such situations. Everyone faces such situations. Your focus must be on more greens than reds, and you are good to go.
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I think it is a good time to rejig your portfolio.
I learnt that betting on smallcaps/midcaps is like finding needle in the haystack.
If you are confident about your picks, be patient, stay invested.
If not don’t mind the losses, mark it as lesson learned and sell the loss making companies and move to quality large caps.
Portfolio concentration might also be a problem.
DO not allot more than 15% for a sector and don’t invest in too many sectors as well.
The trend might also be a factor. Without knowing what the portfolio consists of, making guesses won’t solve your problem. Seek a financial adviser and make decisions based on your risk profile.
Focus on risk management, and long term holdings. And remove stocks that have been performing badly over a year.
You should review your portfolio thoroughly. Consider choosing the stocks of companies that have good fundamentals. Diversify your portfolio if it hasn’t been already. Try reallocating the amount in various sectors.
It has started to catch up by outperforming since last few days. Today also index is down but my PF is up