How Raj Stayed Calm & Gained Big During Market Crash

(Name changed to protect privacy)

Investor Snapshot: Raj Mehta

Age: 34
Profession: IT Consultant in Bangalore
Monthly Income: ₹1,20,000
Financial Goal: Build a corpus of ₹1.5 Crore for retirement in 20 years
Risk Profile: Moderate to High
Investment Style: Systematic and long-term focused

Investment Portfolio Before the Crisis

Raj began his mutual fund journey in 2018 with the help of a financial advisor. His monthly SIP contributions totaled ₹15,000 across three fund types:

₹7,000 in an Equity Flexi-Cap Fund
₹5,000 in a Balanced Advantage Fund
₹3,000 in a Short-Term Debt Fund

He also planned to top-up ₹5,000 every year and conduct a portfolio review every six months.

The Market Crash of March 2020

When COVID-19 hit in early 2020, global stock markets crashed. The Nifty 50 index fell by over 35% in just a few weeks. Raj’s mutual fund portfolio lost nearly 25% of its value.

Media headlines were alarming:
"Markets in Freefall"
"Investors Losing Lakhs Overnight"
"Is It Time to Exit?"

Several of Raj’s friends panicked and withdrew their investments to avoid further losses.

The Emotional Dilemma

Raj was deeply concerned.
"I was scared. Every time I opened the app, my portfolio was in red. I wondered — should I stop SIPs? Should I withdraw everything?"

Before making any decision, he reached out to his advisor for guidance.

The Strategy: Staying the Course

With his advisor’s support, Raj decided to:

Continue all his existing SIPs
Invest an additional ₹50,000 as a lump sum into his Flexi-Cap Fund while NAVs were low
Increase his monthly SIP by ₹2,000 from April 2020 onward
Maintain his asset allocation, with a slightly higher equity tilt
Avoid checking portfolio performance frequently and stay focused on his 20-year goal

His advisor advised:
"Volatility is temporary. Staying invested during market lows is when real wealth is built."

The Outcome: From Fear to Growth

By mid-2023, the market had not only recovered but reached new highs. Raj’s disciplined approach paid off:

Portfolio CAGR over 5 years: 13.2%
Total portfolio value: ₹9.6 lakhs
Total investment: ₹6.5 lakhs
Marching towards his retirement goal
Maintained peace of mind and confidence in his investment journey

Key Takeaways from Raj’s Story

Staying invested during a market downturn can lead to strong long-term gains
SIPs are most effective during volatile periods due to rupee cost averaging
Emotional decisions often result in missed opportunities
A trusted mutual fund advisor provides clarity during uncertain times
Volatility should be viewed as an opportunity, not a threat

Final Words from Raj

"Looking back, I’m so glad I didn’t follow the crowd. I added when others exited. The market rewarded my patience. My advisor was right — discipline is more powerful than timing."

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