Nithin Kamath of Zeroda revealed two major disadvantages for investors to face their first real market accident

Zeroda’s CEO Nithin Kamath shared valuable insight for investors, who were navigating the ongoing stock market reform, especially for those who started investing post-pandemical and are facing their first real market accidents.

“For those investors who started investing after epidemic, this is the first real market reform. Markets are cyclic, and the way our markets went above the end of 2020, this decline was unavoidable,” Nithin Kamath It is said in a post on social media platform X on Monday.

Stab

He expressed concern that many investors, especially those with those Systematic investment plans (SIP), has begun to stop its contribution, a step that he believes can affect long -term development.

Kamath said that when he could not fast for the day, it seems that the number of investors stops his sip. “This is wrong,” he said.

According to a report by JM Financial, the SIP stoppage ratio increased by 109% in January, which was a hit of up to 52% in April last year. This indicates that the recent market recession has affected retail, or individual, investors confidence, making investors mixed or lost with a cost of rupee.

Kamath said that an SIP helps you average your investment in various market cycles. “You were average on your way since 2021; Now, you average on the below path,” he said.

Kamath attracted similarities for market behavior seen in 2020, when large, middle and small-cap stocks experienced a significant decline of 25–40% before rebounding with a profit of 200–400%. He reminded the investors that panic during the recession could disappear due to future recovery.

As part of his advice, Kamath emphasized the importance of sticking to a disciplined, long -term investment strategy. “As long as you invest regularly in the right funds, bring diversity, and remain disciplined, your long -term success is more likely,” he said.

Avoid leverage

Another recommendation for new-age investors that Kamath shared was to avoid leverage. “There is no dearth of businesses that are encouraged to borrow money to invest, but this is a bad idea,” Kamath said.

He said that while no one has any idea, the way the stock markets can move forward, the loan to invest only increases pressure to work on nervousness.

He said, “You are better than just investing and going away from doom and sadness,” he said.

Nithin Kamath’s comments come at a time when the Indian stock market is facing immense sale. Benchmark indices – Sensex and Nifty 50 – have fallen for five straight months, a trend that was last seen in 1996 about 30 years ago. The decline in broad markets is stapper, where there is a major risk of retail investors, thus their investment advice is important for them.

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