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    Taking, understanding, managing and risks becoming reality are 4 different things: Check 5 things before making a decision to buy or sell

    Synopsis

    On a day when 99 of the 100 stocks in the small cap index are trading with big cuts. All sectoral indices are trading with big cuts, market breadth is extremely poor, there are many reasons which are and will be put on the table to explain why the fall has taken place. There is a high probability one of the explanations which would be put on the table today is the stress test of small and midcap schemes and how flows to them could be impacted. But should the result matter to you ? No if you are not holding any small fund scheme. Instead of bothering about what will come out over the weekend, just focus on two things, especially those who have turned bulls in the last few months. First nifty or for that matter any indices has nothing to do with your portfolio, so stop comparing it. Second, do a review of your portfolio and ask yourself one simple question: why did I buy this particular stock? Was it friendly neighborhood advice or was it because there was something positive happening in the company or the industry in which this stock belongs ? The answer to this question is the key whether one should stay invested or sell the stock.

    Today when you will look at the value of your portfolio, in all probability a large majority will find the decline in their portfolio is more than what nifty has suffered and that is where the doubt and question comes to mind. There is a high probability that a number of investors would view the current phase of correction as an opportunity to buy more, for them it is most important that they should go back to the basic principle of investing
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