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    Don’t panic, stay invested: What to keep in mind for your money during Covid-19 outbreak - Hindustan Times thumbnail

    Home / Business News / Don’t panic, stay invested: What to keep in mind for your money during Covid-19 outbreak

    Domestic equity markets have corrected 32% since the start of this month. This sharp correction has not spared anyone. Not only are stock prices down 20%-30%, but the return on a 10-year diversified equity mutual fund SIP has most likely fallen to low single digits and return on a similar SIP for a five-year period is probably in negative territory.Now what? Is it time to sell or is it time to start a buying frenzy at lower prices? Undeniably, equity market across the globe were overvalued not so long ago. This means a correction in prices can be viewed as what market experts term a mean reversion or a move towards rational stock prices. One of the triggers for this sharp correction is really an unknown variable — like Covid-19. The consequences of a pandemic spreading and disrupting business earnings is a factor hard to model into earnings excel sheets at the moment. Given this unknown, the extent of the market correction too remains unclear. No one can control the markets, but investors can shape their own reactions and decide what to do with their money — or, more importantly, what not to do. For starters, here’s what investors should not do. 1. Give in to the urge to act immediately: Any action taken on investment portfolios now will most likely be out of a sense of urgency to match the pace of the market. Ideally, there needs be no change in long-term equity investments; historical data shows that the time and pace of recovery, just like that of a slump cannot be predicted. According to Ashok Kumar, co-founder and chief executive officer, Scripbox, an online investment s
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