Not every day will be the same. Since Indian equity markets in general are highly volatile and witness unexpected movements every single day, it becomes really important that you stay informed about what will affect your investments.

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Neeraj Singh, co-founder at Groww, an online investment platform explains how a Rs 1,00,000 investment suffered and recovered during highly volatile times in the market.

Global equity markets suffered high losses during the 2008 financial crisis, which resulted in panic short selling. "Holding on to the investment paid off in the long term," Singh said citing an example on how an investment of Rs 1 lakh tripled in 10 years.

What are you supposed to do when the returns are negative:

Don’t panic. Holding on to the investment till it pays off in the long term. However, this might not be true in all cases.

Keep reviewing your funds performance on a regular basis. If your mutual fund isn’t giving good returns, but other mutual funds from the same category are giving better returns, it might be time to re-evaluate your investments.

Learn more about mutual funds.

Keep your ears and eyes open. See what the experts have to say.

Discuss your investments with other investors. There are Whatsapp groups where you can interact with very seasoned investors and experienced financial advisors too. Here’s a link to join such a group: Investment Related Groups.

Disclosure:

The CNBCTV18.com editorial team does not engage in speculative or active trading in stock markets and follows its Code of Conduct on securities trading and investment. Any investor/ viewer is advised to carry out necessary diligence on their own or through a certified registered financial advisor for investment decisions.

First Published:Nov 23, 2018 2:07 PM IST