Bear Markets Don’t Destroy Wealth — Investor Behavior Does

(Name changed to protect investor’s privacy)

Background

Name: Ramesh Sharma (name changed)
Age: 36
Profession: IT Consultant
Goal: Build a retirement corpus of ₹2 Crores by age 60
Initial Approach: Self-directed stock picking, media-based investing

Phase 1: Before Guidance — Ramesh as a Do-It-Yourself (DIY) Investor (2017–2021)

Market Event: Nifty Volatility during 2018–2020

Minor bear phases in 2018 (IL&FS crisis), followed by the COVID crash in early 2020
Nifty fell around 40% from Jan to Mar 2020

Ramesh’s Reaction (DIY Mode):

Bought a few trending mid-cap stocks in 2018 based on TV recommendations
Suffered losses when markets corrected — sold at a loss out of fear
In 2020, panicked during COVID crash — stopped his direct equity SIPs completely
Tried to time the recovery, but re-entered late, missing the rally
Felt exhausted and confused, with just ~3.5% CAGR after 4 years

Turning Point: Ramesh Meets a Certified Mutual Fund Advisor (2021)

Advisor’s Strategy:

Conducted a goal-based discussion: ₹2 Crores corpus by age 60
Recommended a mix of large-cap, flexi-cap, and mid-cap mutual funds via SIP
Introduced him to the Loser’s Game mindset — avoid mistakes, stay consistent
Advised to ignore noise and focus on compounding

Phase 2: Investing with Guidance (2021 Onward)

Market Event: Russia-Ukraine War & Rate Hike Panic – 2022

Nifty dropped ~15% from Oct 2021 to Jun 2022
Global fears of inflation, recession, war

Ramesh’s Reaction:

Began to worry about returns — considered pausing SIPs

Advisor’s Support:

Explained how volatility is normal in long-term investing
Sent charts showing past recoveries (including COVID)
Urged him to stay invested, and even suggested increasing SIP if income allowed

Outcome:

Ramesh stayed invested
By mid-2023, his portfolio had fully recovered
CAGR bounced back close to 11%

Market Event: Mid-2023 Correction on Global Recession Fears

Nifty showed choppy sideways behavior with brief dips

Ramesh’s Reaction:

Felt tempted to move to FDs temporarily for safety

Advisor’s Guidance:

Reviewed portfolio goals and showed that his investments were still on track
Advised against reacting to short-term volatility for long-term wealth building

Outcome:

Ramesh stayed on course
His portfolio hit a new high by early 2024

Timeline Summary: How Each Bear Phase Affected Ramesh

Year	Market Event	DIY Approach	Advisor Comments	Result
2018	IL&FS/NBFC Crisis	Bought mid-caps, suffered losses	Not Applicable	Lost Confidence
2020	Covid Crash	Panicked, exited equity SIPs	Not Applicable	Missed rally
2022	Russia-Ukraine War	Thought of pausing SIPs	Advisor calmed and guided	Stayed invested, recovered fully
2023	Global rate hikes	Tempted to switch to FDs	Advisor re-emphasized long-term goal	Portfolio hit new highs

Final Reflection

Ramesh's biggest transformation wasn’t in what he invested in — but how he behaved.

The Certified Mutual Fund Advisor:

Anchored him to his goals
Protected him from fear-driven decisions
Helped him stay calm when others were panicking

As a result, Ramesh is now on track to meet his ₹2 Crore retirement target with discipline and peace of mind — something he couldn’t achieve alone.

Verdict: The Real Advantage Is Not Strategy — It’s Stability

Mutual funds gave Ramesh diversification and structure.
But it was the advisor who gave him emotional stability, perspective, and long-term confidence — especially in the bear phases that trap most investors.

DIY investing isn’t everyone’s cup of tea

It’s for those who live and breathe markets, stay calm in chaos, and know when to act — and when to sit still.

For everyone else, a Certified Mutual Fund Advisor can be the difference between stress and success.

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