*Markets are at an all-time high – what should I do?*

We see the market index (Ex. Sensex / Nifty) reach its all-time high & we become anxious if there will be a fall soon. Though, we cannot predict market ups / downs, one thing we can say from the past data:

 

In the last 10 years (since 2014), except for 2016, every year Sensex / Nifty has made an all-time high. 

In the last 33 years, markets reached all-time highs in 22 years.

 

If we had sold each year, we would have missed out on wealth creation today, because we would not have known when to get in again. It is impossible to time the market.

Please understand, Sensex / Nifty is just an index – it is a number. Market movements are based on the underlying factors – though many, but in the long-term it is dependent on the profitability & growth of the companies / economy. India is a growing economy & a fastest growing one too – the next decade & two may be the best years for our country. So, keep that trust & stay invested / keep investing.

Don’t look at markets for short-term quick profits – the compounding miracle / wealth creation happens only in long-term (10+ years).

So, when should I withdraw from mutual funds?

1) Withdraw when you have reached your life stage for which you need funds now (you had anyways invested only for this goal)!  

2) Withdraw if your life goals are within 1 year.

3) Withdraw partially if your life goals are 1-2 years away & we can move them to a low risk product.

If the planned life goal is retirement, then you need not worry about withdrawing now, as anyways we will only do a systematic withdrawal monthly to provide an income.

If none of the above is true, markets being high or low should be of no significance to you.

Quick Fact: (Higher) Growth & (Lower) Inflation equilibrium exists only in India & Indonesia among all the major developed & emerging countries.