Have faith in the process - best returns comes from the worst periods
This post is not a flex - my returns are very average
This is only to tell everyone that if you're scared and stopping your investments - PLEASE DON'T.
A lot of folks are posting things like 'Nifty - it is done bro'. And I understand the panic and concern, but we are only experiencing'recency bias' - a well-known mistake in investing.
Please stay invested in the market - the best returns come from the periods when everything looks bad.
I have been investing for a very short time period - slightly over 5 years.
I analyze my investment by vintages (built a Python code I run every weekend) - and in my personal view, that is the only correct way of judging your portfolio (by slicing and analyzing)
As you see below - despite the market being 15% down from its high, the returns for all vintages>3yrs look better than the overall picture. Obviously it would be higher had the market grown healthily. Personally, I would only view investment performance if they have been more than 5yrs.
Yes, the last 2-3 years have been flat, but you have to give it time. Let's see where we are when we complete 5 years across vintage.
| Time in Market | XIRR |
|---|---|
| >5yrs | 7.9% |
| 4-5yrs | 8.7% |
| 3-4yrs | 10.4% |
| 2-3yrs | 4.4% |
| 1-2yrs | 0.1% |
| 0-1yr | -8.2% |
Risk Appetite - Aggressive