WHAT HAPPENS WHEN YOU REDEEM DURING A MARKET FALL?

Imagine a situation……… :

 

* Markets fall → NAV becomes cheaper

* You decide to redeem everything

 

What does that really mean?

 

* You sold all your units in the evening at a low NAV

* Next morning, when prices are low and attractive…

* You are no longer invested

* You skip the very day when investing actually makes the most sense

 

So exiting in a falling market is not just “protecting money” ………

 

it is choosing not to invest when prices are on sale

 

When markets fall, continuing to stay invested means you are buying at lower price.

Redeeming at that time means you are refraining to buy exactly when prices are attractive.

 

It’s like stopping to invest exactly when the market is offering discounts and choosing to invest when prices go up again.

 

 “Markets don’t hurt investors by falling. Investors hurt themselves by getting out when markets fall and coming back when markets rise.”