The other day, I sat across from a friend, staring at my phone in disbelief. My portfolio was down 30%, and I felt the weight of every red number on my screen. I took a deep breath, ran a frustrated hand through my hair, and blurted out,

"I should’ve just put it all in crypto!"

My friend didn’t react. He just sipped his coffee and, after a moment, asked, “Why did you start investing in the first place?”

I froze.

That question hit harder than the market crash itself.

I wasn’t investing to play a game. I wasn’t investing for a quick win. I started because I wanted to make good returns. But right now, with my portfolio bleeding, all I wanted to do was run. Sell everything. Cut my losses.

And that’s exactly when I realized how most investors think and fail.

The truth is, markets will hurt you. They will shake your confidence, test your patience, and make you doubt everything.

But remember, the pain is temporary- and it subsides, only if you stay in the game. For a long time.

Because history has shown us one thing repeatedly: the market, as a whole, always comes back. (Before going down again, of course, eventually)

The quest of growth includes pain too- The question is, how much?

Life isn’t a straight road. Neither is investing.

There will be wars. Recessions. Pandemics. Political turmoil. Corporate scandals. Something will always try to shake your conviction.

If your entire portfolio is in stocks, you will feel every single punch the market throws.

If your entire portfolio is in equity mutual funds, you will still feel every single punch the market throws.

But if you diversify, or invest across different asset classes like equities, bonds, gold etc.- perhaps the inevitable hit will feel like falling from your bed, instead of from the second floor.

It will hurt but will probably hurt much lesser.

Let’s look at how much your portfolio would have fallen (drawdown) had you invested purely in equities, vs if you invested across asset classes- in some of the worst recent crisis times.

Diversification smoothens your investment curves and makes them hurt lesser.

Market crashes feel like the end, but they aren’t

The past few weeks made me feel despondent. Doom, no less.

Possibly what many others, from what I saw on social media were feeling too.

That’s when my friend pulled out his phone and showed me something from the same social media:

And the data from @K_Karthik_Raja put things in perspective.

Every single time, many thought “this is the end.” But those who stayed the course, made wealth.

Who didn’t? Perhaps the ones who panicked, sold & retired hurt- scared.

How smart investors handle market downturns

This recent fall and my rollercoaster feelings (already) through these past few weeks made me remember what my MFD had told me (and then repeated again recently)

Crashes Are a Sale—Not the End of the World
If you wanted a stock at ₹100, why panic when it's ₹70? That’s a discount, not a disaster. The market will crash, recover, and hit new highs, just like it always has. So, don’t sell in fear. In fact, if you have something left, buy more, with confidence.

Doing Nothing Is a Strategy
When your portfolio is bleeding, the urge to “do something” is strong. But most of the time, doing nothing is the smartest move. Selling in panic turns temporary losses into permanent ones. Stay calm, check the fundamentals, and let time do its work. Hold off that redemption instinct.

Compounding Rewards Patience, Not Panic
Quick gains are luck. Wealth is built by staying invested when others give up. Wealth is also built by investing more and accumulating units when markets fall. Exactly what SIPs are designed to do. If you can’t handle short-term pain, you won’t see long-term gains. Sit tight, trust the process, ensure you continue your SIPs, and let compounding do its thing.

Mute the Noise
Stop listening to all headlines, stop listening to every expert, stop watching doomsday conspiracy theorists, stop reacting to noise all around. Listen to history. Learn from it. Every previous crash felt like the world was ending yet markets bounced back. If you jump out now while the roller coaster is going downwards, you’ll miss the fun when it’s back on its way up. Stay in the game.

Tough times don’t last. Tough people do.

I’ll end this blog with some beautiful shayari by a legendary Urdu poet:

"दिल ना-उमीद तो नहीं,
नाकाम ही तो है,"
"लम्बी है ग़म की शाम,
मगर शाम ही तो है!"