After a long bull run, the Indian stock market is experiencing sharp corrections. Since September last year, markets have been in a downtrend, with famous stocks losing over 40% from their all-time highs. January and February have seen massive sell-offs, mainly led by foreign investors exiting Indian equities.
Retail investors are staring at red portfolios, wondering—should they hold, exit, or buy more?
The Common Investor Mistake: Panic Selling!
When markets fall, the instinct is to sell. But history proves that panic selling locks in losses. Instead of reacting emotionally, experts advise staying invested and even increasing SIPs during downturns.
Radhika Gupta’s Golden Rule: Stay Invested
Edelweiss Mutual Fund MD & CEO Radhika Gupta urges investors to remain calm. She says:
She stresses that bad times don’t last, but good investors do. Sticking to SIPs during market corrections can dramatically improve long-term returns.
S Naren’s Warning: Watch Mid & Small-Caps
ICICI Prudential AMC’s S Naren warns investors about mid- and small-cap risks. He believes 2025 could be the most dangerous year since 2008-2010, as retail investors are now more exposed than ever before.
What Should Retail Investors Do?
- Hold your SIPs—historically, downturns provide the best buying opportunities.
- Avoid panic selling—selling now means locking in losses permanently.
- Rebalance portfolios—focus on strong, fundamentally sound stocks.
- Increase SIPs if possible—buying during corrections leads to better returns over time.
So before hitting the sell button, ask yourself—are you reacting to fear or thinking long-term?
