Be a consistent & prudent investor!

For the past few months, sensex has been going through its ups and downs(mostly downs!) resulting in erosion of investors wealth.The economic growth indicators are showing signs of a slowdown and in some cases ,steep drop in growth rate or even negative growth.The best example will be automotive sector.Most of the mutual fund investors are seeing that their holdings are losing value or showing negative returns.So what should an investor do now? Should he exit all his equity investments?.. Should he redeem all his mutual fund units?.. Should he stop/pause his investments?..A simple answer to all these questions will be 'No'.Every growing economy goes through growth & recession phases.No economy can keep on growing on full steam without a break.What happens to a car engine if it runs in full speed without a break.It results in a breakdown or overheating eventually!.. Similar is a country's economy.The bottom line is having trust in a country's potential & economic growth story while taking into account prevailing market conditions.India as a country has huge potential!So the economic growth will eventually pick up in the medium to long term.Also we have to remember that this is the best time to make investments in equity as valuations are at more appropriate levels.Mutual fund nav's too are lower resulting in our ability to purchase more units for the same amount of investment.The best course of action is to continue investing based on a prudent review of the investor's portfolio.In case of mutual fund investors, continue the SIP investments while ensuring periodical review of Investments.The key is to stay consistent with your Investment plan and be rest assured, the rewards will come in long term!