Nervous about market volatility? Read this | Economic Times

The volatility in the stock market is making individual investors extremely nervous. The kind of doubts and queries they have point to this direction. This is not to say that there is dearth of braver investors who want to start investing in equity mutual funds. However, even they have nagging doubts. Well, whether you are an existing investor or novice you can recheck these points to be sure you are doing everything right.Is it the volatility?Is it the wild ups and downs in the market that is making you question your decision to invest in equity? Well, you can’t avoid volatility if you are investing in the stock market. The market would find some reason to buy or sell stocks. It would be even more challenging to make sense out of it when the economy is not offering firm cues like the current one. You will not be able to avoid these speculative movements in the stock market. All you can do is remind yourself that these movements won’t impact your long-term plans.Are you in the wrong asset?Are you a new investor to equity funds? Do all the ups and downs in the market make you very nervous? Are you losing sleep? If yes, you must pay a visit to your advisor. Discuss the issue with him. Does his explanation make sense? If you are not completely convinced and still worried, you should reconsider your decision to invest in equity mutual funds. Did you change your plans? Many investors abandon their original plan when the market is changing its direction. Some may take risky bets while others may be playing it safe, However, the trouble is that often these decisions are made on some information. Often this may not be verified with the advisors. This can make investors edgy. Touch base with your advisor and tell him about the changes you have made to the original plan.Are you listening to lot of market chatter?New equity mutual fund investors often try to follow all the market chatter. This cheers the investors when the market is on an upswing, but the picture changes during bleaker periods. Rumours and speculations may spoil the mood of these investors as they collect all the negative talking points. Stop this habit. Sensex-spotting will not make you rich. And placing investment decisions on daily chatter will be counter productive. Listen to your advisor and stick to your plans.General confusion is adding to the worry As said earlier, you cannot escape volatility in the market. It is quite natural for new investors to get influenced by this. However. Investors should ensure that they should not be perturbed unnecessary. They should constantly remind themselves about their original investment plan. At any point they feel unnecessary pressure they should talk to their advisors.