Stay invested for the long-term: Equities are inherently volatile by nature. In the short-term, they respond to a host of factors including fundamental, economic, geopolitical, and sentiment-based factors that influence stock prices (and as we have seen recently, Pandemics too may have a major impact on markets). However, over the long-term, equities hold the potential to generate wealth and help you achieve your financial goals. In the long run, the growth of a country’s GDP is reflected in higher Corporate Profits and eventually flows into a higher market capitalisation for the companies. Hence to reap the benefit of equities, it is important for you to ignore the short-term price movements and stay focused on the long-term. It is equally important for you to stay invested through the down periods so that you can benefit from the up periods. Unfortunately, this is easier said than done. You might find it challenging to stay invested when markets are in red and your portfolio is in deep losses.