It is when the tide turns we realize what mettle our stocks and we ourselves are made of…we panic and tend to make all wrong decisions…natural for investors…the more stocks we have the less we will know about them…the less we will have faith in them at times of crisis and the more likely we will make a wrong buy or sell decision…and if we feel the risk is too high in even 20 stocks…then we should believe ourselves that yes indeed it is much higher than we feel and stick to mutual funds…as even with 2.5% expense ratio they have given sure returns
The returns of the portfolio came down to 6.9% in this ongoing fall. The problem that I’m facing is that left with no money to invest when there’s a big fall like this. Have to wait till the next payday!. Maybe that’s the price one has to pay for remaining invested all the time in equities.
So thinking seriously about SIPping a small amount (5% of my monthly investible ammount) in a debt fund on a monthly basis with a thought of using the corpus to invest in stocks only with a fall in NIFTY of > 10%. It will be a great help if anyone who’s doing it could throw some light on your experience.
I have a diversified portfolio too, but not as big as your’s. I have invested in a few stocks purely looking at numbers, did not do any kind of research. So, as I had gained a year of experience, when the markets are down, I started selling off these un-researched stocks and started investing in the stocks I have conviction in, I think I am doing the correct thing. You may consider it.