I will invest when markets come down

One of my friend was arguing with me once about Sensex being very high & it not being a right time to invest & also some so called experts telling him that it will go down to 4k levels very soon, this was July 06 and I was telling him to look at his risk profile & investment horizon and invest a part into debt and equity MF based on the profile. But my friend didnt listen as he had too much trust on his experts who had confidence that the markets will go down.

I met him again sometime in the first week of November 06, it was after the Oct crash, he said see I told you market will come down, just wait for few more days and you will see markets crashing to 4K. Again as usual I told him all the importance of medium to long term investing and advised him to invest as per risk profile and horizon and not to try timing the market. I again stressed that there is no time good or bad to enter if the horizon is good. This time too he gave me the experts view and didnt invest.

I got busy with my work and travelling and happened to meet him few months back to find out that my friend is still sitting with cash to invest as after that market had climbed to 12000 levels, the only difference here was now he had got a new set of experts who were of the opinion that market will touch 6000 ( better than 4K level) by January 07.

The biggest loss here is the Opportunity loss to the tune of 60% pa ( on the avenues I had suggested at the first meeting for investment & taking into consideration he being a balanced investor)

This happens to all of us. We try to listen to some useless so called experts and not go with the basics of investment. I will be covering in details the basics and also the way to invest on this blog. so read on...

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