With global uncertainty, geopolitical tensions and volatile stock markets keeping investors on edge, financial experts are advising people to focus less on short-term market swings and more on discipline, patience and risk management.
Speaking on an investment-focused discussion, wealth mindset coach Meghana V Malkan exclusively explained on ET Now Swadesh that while market volatility may feel unsettling, investors should remember that uncertainty is not new to financial markets. Instead of reacting emotionally, investors must learn to understand their own risk appetite and build a process-driven investment strategy.
Market volatility is a part of investing
Opening the discussion on the current market environment, concerns were raised around global instability, geopolitical tensions and reactions in financial markets. The question many investors are grappling with today is whether the present volatility is unusual or simply another phase in market history.
Responding to this, Meghana V Malkan said every market cycle comes with its own unique challenges, but volatility itself is not new.
“If we study market history, we will see many rises and falls. Every market correction feels new and difficult at that moment, but volatility has always been a part of investing,” she said.
According to her, the bigger challenge is not only market fluctuations but also the emotional volatility investors experience alongside falling or rising prices.
“The graph of the market moves up and down, and our mindset moves along with it. That is human behaviour,” Malkan added.
Why discipline matters more than timing the market
Malkan stressed that investors often panic when markets fall and become overly confident during rallies. However, discipline acts as a shield during both extremes.
“The one thing that protects us from volatility is discipline over anything else,” she said.
She further explained that discipline comes from having a clearly defined process.
“When you have a process or method, your discipline becomes strong. Whether markets are at their highest highs or lowest lows, discipline helps maintain stability,” she noted.
SIP investors showing signs of consistency
The discussion also touched upon the resilience shown by retail investors through Systematic Investment Plans (SIPs).
Although SIP inflows have seen some moderation recently, the decline has not been as severe as many market participants feared.
Malkan said this behaviour reflects hope among investors rather than deep market understanding.
“People often see investing as a safe haven. Human beings tend to hold on to hope, especially during difficult times,” she added.
“Your investment decisions should depend on your own risk appetite and financial parameters, not on collective expectations,” she said.
Patience is the real key to wealth creation
“Investment is a marathon. There are times to sprint when market trends are in your favour, but there are also times when doing nothing is the best strategy,” she said.
“Money is made by sitting and waiting, not by trading,” she added.
Young investors are more curious but also more risky
Speaking about younger investors, Malkan noted that today’s youth are far more eager to learn about investing than previous generations.
“Young investors today have a pro-learning approach. They genuinely want to understand markets and investment behaviour,” she said.
“The biggest thing that can hold them back is excessive risk appetite. Skill matters, but risk and emotional management matter even more,” she cautioned.
Social media can become a dangerous distraction
Malkan warned that financial content online often glamorises quick wealth creation and unrealistic returns.
“Social media can become a major distraction. Many things are sugar-coated and presented as if making money in markets is very easy,” she said.
“There is a big difference between someone genuinely guiding you and someone advertising quick returns,” she added.
Lazy vs active investment strategies explained
Malkan explained different investor behaviours through practical examples.
A “lazy investor”, she said, is someone who invests based on rumours, social media tips or hearsay without research.
“If someone tells you a stock will double in two months and you invest without study, that is a lazy investment decision,” she explained.
Wealth can be destroyed by behaviour
In closing, Malkan highlighted the role of behavioural finance in wealth creation and destruction.
She explained that many investors blame markets or strategies for poor returns while ignoring deeper behavioural issues.
“Sometimes the real issue is not the market or strategy — it is your wealth mindset,” she said.
“Skillset may be 20 per cent, but mindset is 80 per cent,” she said.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions)
