Archive · 22 Sep 2026
Warning Signs Short-Term Noise Is Derailing Long-Term Investing
Being a long-term investor means sticking with a plan for many years.
Some people change their investments after seeing a few months of poor returns.
Checking a portfolio constantly can make normal market movements feel frightening.
Indian stocks can fall 10–20% during many years, and larger declines can happen occasionally.
These drops do not automatically mean a long-term plan is failing.
Investors can write down their plan before markets become stressful.
They can also rebalance when their stock allocation moves about five percentage points from its target.
Keeping short-term spending money separate and following the 7-5-3-1 framework may help investors remain patient.
Investors may reconsider long-term plans after only a few months of disappointing returns.
Switching funds because of recent one- to three-year performance can signal performance chasing.
Indian equities have historically seen 10–20% declines within most years, according to Rhishabh Garg.
Investors can use written asset-allocation plans and predefined rebalancing rules to reduce emotional decisions.
The 7-5-3-1 framework emphasizes a seven-year horizon, five equity styles, annual SIP increases, and preparing for emotional setbacks.
- Who
- Investors and Rhishabh Garg, CEO of FundsIndia.com.
- What
- The article identifies signs that investors are reacting to short-term market performance and offers rules for staying invested.
- When
- The article does not specify a publication date; it discusses investment decisions during periods of market volatility.
- Where
- The guidance concerns Indian equities and investors using SIPs.
- Why
- To help investors avoid changing long-term strategies because of temporary market declines, recent returns, or emotional reactions.
- Expert quoted
- Rhishabh Garg, CEO of FundsIndia.com
- Typical intra-year decline
- Indian equities have experienced 10–20% declines in most years, according to Garg.
- Larger corrections
- Declines of 30% or more have occurred roughly once every seven to 10 years, according to Garg.
- Rebalancing example
- Consider rebalancing when equity allocation moves about five percentage points from its intended allocation.
- Near-term funds
- Money needed soon should be kept separate from long-term investments.
- 7-5-3-1 framework
- Seven-year minimum horizon, five equity investment styles, three emotional phases, and at least a 10% annual SIP increase.
- Emotional phases
- Disappointment, irritation, and panic.