Before or After Elections, When You Should Invest?
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Ongoing General Elections are the main concern among investors in India, they are seeking and predicting the results of these elections and will invest accordingly. This is the general mindset of majority of investors. Is it the right way?
Well, if you are waiting to get extra gains from equity markets from these elections affect in the market by waiting for results, then you will never get the right benefit because you are not ready to take the required risk instead you are staying out of the field with expectation to play right – This right never happens!
In Cricket, Good and Excellent players always play in the field and not outside the field, they never see the outcome of their play by predicting and deciding weather they should play or not, these players play often in the field and do well over time to become excellent players.
Similarly, investors those who are staying out of the market in expectations of gaining more from the market, they will never get the better gains from the market because they have not invested in the market. Only those who are invested before these general elections and are continuously investing before these election gets over will be able to enjoy the ride that market will take during these time frames.
Moreover if you are not investing in equities just because of this election thing, then you are not doing fair enough with your equity investments. Generally, equity is meant for 10 years at least and elections falling in between or any other event doesn’t matter enough (only if you have selected right investments/good businesses).
Please set aside your market expectations that they will move up or down, whatever way markets move in coming months all we must understand is that markets are going to make good money in next 10 years, if you’re investing with any time period less than 10 years then don’t invest into equities – then elections shall also not matter to you. And, if you are investing for more than 10 years than too election should not matter to you.
So try to get basics right, events are part of market volatility and so is election, predicting uncertainties for the sake of money is the nightmare that will take years to recover from, so don’t predict just invest!
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
