The important thing to remember about Investing is that it is not sufficient to set up a portfolio that will survive on average. The key is to survive at the low ends. – Howard Marks
A person who invest Rs. 1 lakh, that average 8% for two years, could end up with any amount starting from Rs. 32 thousand and Rs. 1.16 lakhs. The order of returns doesn’t matter. Getting -10% and then +26% is mathematically equal to getting +26% first and then -10%. But compounding, especially in Investing works when we get lesser returns in the initial period ( as we get more units) than the other way.
Generally people wait for the good / bullish period to start investing as they want their returns to start in a positive way but if are okay with lesser returns during the accumulation phase its better to start immediately instead of waiting for good time.
Happy Investing!
RaVi
Fund Wallet is AMFI registered Distributor of Mutual funds (ARN-111231). This is strictly not an Investment Recommendation and just shared for education purpose only. Investment in Mutual Funds are subject to Market risk, please read all risk related documents before Investing.
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