Investors often ask, when is a good time to invest? . They ask this question in order to ensure that they do not lose
the capital they invest, which they believe could happen if they invest at the wrong time. The truth is that the Stockmarket is volatile and there is no particular good time to invest. If you are investing for the long-term, any time is a good time to invest.
Let’s take the example of three friends, Rohit, Tarang and Suresh, who joined the top IT companies after passing out of college. As they were earning a regular pay, Rohit tried to convince his friends to invest a portion of their income rather than spend it or keep it in a savings account. Rohit and Suresh decided to invest `10,000 per annum in the stockmarket, while Tarang, who was risk-averse, stayed away from the stockmarket and kept it in a savings bank account. Rohit managed to capture the best day each year when the markets were at their lowest. He managed to see his `2.20 lakh grow to `12.78 lakh over 22 years. Suresh, who was unfortunate
to invest at points when the stockmarket was at its high each year, saw his `2.20 lakh grow to `7.50 lakh during the same period. Elsewhere, Tarang, who did not invest in the stockmarket at all and kept his money idle in the bank during this period, could only make `3.14 lakh. Thus, we can conclude that even if we invest in the
worst stockmarket conditions, we can see our investments grow as compared to not investing at all.
