What should investors do after the crash in small-cap funds?

Investors in India(or anywhere in the world) can be categorized into three categories

  1. Investing because everyone is
  2. Investing for making a quick buck
  3. Investing with a goal in mind

Investors in the 1st and 2nd categories bail out when they make a profit or redeem their money as they cannot stomach the downside. In contrast to this, investors in the 3rd category keep on with their timely investments without getting perturbed by the short-term events.

Dedicated Investor: Focus on Goals, not on events

If the individual falling in the 3rd category holds an investment in small-cap funds, they will prefer to allot more money to the fund and gather more units. Small-cap stocks, that become the base of the Mutual Fund, correct heavily during a bear phase & rise sharply during a bull run.

Small-Cap Stocks: High Growth Companies that are volatile by nature

So, stay invested, ride the wave of uncertainty and achieve your target.

Hope this helps

You can follow my blog or Facebook page on investing for getting insight into other stocks.

Happy Investing!!

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