TRANSCRIPT

From record highs.. to a five month slide, market linked investments have turned every investor's dream into a nightmare... much like the American dream did for some! But don’t worry; the situation is not that dramatic… at least, not yet!

It's true that fluctuating US interest rates, tariffs, slowdown in domestic consumption.. have contributed to this rough patch. But, it's mainly capital outflows from India that have sent the stock market tumbling and the rupee into freefall.

Last week was particularly brutal. It left even seasoned investors feeling queasy and the newer investors questioning their life choices.

Now, let’s take a glimpse at the journey of the Sensex. What do you see? Despite the volatility and a slew of lows, the market consistently rebounds to reach new record highs. What does that tell us? It screams resilience and long-term growth potential — just like the i won’t quit attitude!

So, is it worth the risk? Let me present another chart that shows the long-term growth potential of equities versus savings and the looming threat of inflation, like party crasher at the celebration of wealth.

The savings line reflects interest earned on savings accounts — a dismal return at around 3.5% today. Can it keep pace with inflation? No, it decidedly cannot, as the inflation line trends upwards. The line indicates the gradual increase in the cost of living. Though standard inflation is typically around 4%, but we all know retail inflation that hurts you more.

Now let’s address the often misunderstood concept of volatility versus risk from investments perspective. Remember the annotation "Volatility is NOT risk". This is crucial! There is variation in trading prices which are the ups and downs in the equity line. But despite the short term fluctuations, the trajectory is positive and increases the value of your money. And, if your investments do not outpace inflation it will pose a purchasing power risk in future years.

In the end, despite the ups and downs, staying committed to long-term investments in equities can lead to financial success. So hang in there, keep investing, and stay focused on your goals!