Investor's query: Markets in 2025 are testing my patience. What should I do and how should I rejig my portfolio?
Markets in 2025 have left investors restless, with Nifty corrections, small-cap swings, and gold hitting record highs. Should you chase momentum, stick with SIPs, or rebalance your portfolio?
- Aug 22, 2025,
- Updated Aug 22, 2025 5:50 PM IST
Markets in 2025 are testing my patience like never before. From September 2024, Nifty dropped 13% and mid-/small-caps slid nearly 20%. Though it has rebounded, I am not sure how to rejig my portfolio. Gold has crossed Rs 1,00,000 and select stocks like BEL and MRF hit lifetime highs. Other investors are confused too — should we chase momentum, stick with SIPs, or rebalance into safer assets?
Advice by Arun Chaudhary, Director & Chief Business Officer, m.Stock by Mirae Asset Capital Markets
2025 has indeed been challenging. Portfolios feel stagnant, SIPs appear slow, and volatility is making investors second-guess every decision. Between September 2024 and January 2025, the Nifty 50 fell nearly 13%, while mid- and small-caps dropped 18–20%. In contrast, stocks such as Aarti Industries, BEL, and MRF touched lifetime highs, and gold surged past Rs 1 lakh with over 18% returns in just 12 months. Then came a sharp rebound—Bank Nifty hit new highs and Nifty recovered to 25,000.
This seesaw makes it tough to decide: Should you have bought more gold, continued SIPs, or waited for the next entry point? Let’s break it down into actionable steps.
1. Start with Risk, Not Returns
The most common mistake is chasing returns without assessing personal risk.
A single-income earner, someone supporting parents, or a homemaker with a fixed nest egg will all have different risk appetites.
Rules like “100 minus your age” are only rough indicators—life stage, job security, and liabilities matter more.
Investing aggressively without a plan often leads to panic exits or desperate moves like F&O trading. That’s speculation, not strategy.
2. Being Consistent Works Better Than Timing
Timing the market is rare. Consistency works.
Investors who continued SIPs during the Sep ’24 – Mar ’25 dip reduced their average cost by 8–12%. Many SIPs are already showing 13–15% returns because of the rebound.
Example: A ₹10,000 monthly SIP from Jan 2013 to Jan 2025 in a Nifty index fund grew to ₹31–33 lakhs, against ₹14.4 lakhs invested.
That’s the quiet power of time and compounding.
3. Diversify with Intent, Not Illusion
Owning 20 mutual funds is not diversification. True diversification spreads across uncorrelated assets.
Past 3 years CAGR: Gold ~13.4%, Nifty 50 ~11.8%, Debt ~6.5%.
A simple 30% equity, 30% gold, 30% debt, 10% liquid split would turn ₹1 lakh into ~₹1.52 lakh.
A smarter allocation—40% equity (large & flexi-cap), 25% gold, 25% debt (corporate/dynamic bonds), 10% liquid—yields ~₹1.60–1.62 lakh with lower shocks.
It’s not about spreading thin. It’s about spreading smart.
4. Ignore the Noise, Focus on Process
Every headline doesn’t deserve a reaction.
June 2025 elections: 8% intraday crash followed by 11% recovery in 4 days.
Oct 2024 border tensions: 6% dip, recovery in 2 weeks.
Mar 2020: A 30% collapse, fully reversed in 9 months.
Markets fall and recover. Emotional reactions usually lead to missed gains.
5. Be Realistic About Returns
Many expect to double money quickly, but real equity returns average 12–15% annually.
₹10 lakhs at 15% CAGR → ₹20L in 5 yrs, ₹40L in 10 yrs, ₹80L in 15 yrs.
A ₹10,000 SIP for 15 years → ~₹63 lakhs from ₹18 lakhs invested.
Patience, discipline, and consistency matter more than chasing quick wins.
6. Seasonal Plays Can Add Value
PSU banks, defence, and infrastructure outperformed in the last 18 months. Riding such themes can add returns—but only if tracked, analysed, and exited on time.
Disclaimer: If you cannot actively manage sectors, stick to diversified mutual funds. Blindly chasing momentum is riskier than doing nothing.
7. Insurance is an Investment Too
With medical inflation at 14%, one hospitalisation can wipe out years of returns. Insurance should not be seen as a tax-saving tool—it’s a core part of your financial plan, just like equity, debt, and gold.
Final Word
Yes, 2025 is testing investor patience. But volatility isn’t new—it comes and goes. What matters is whether your portfolio is anchored in:
Risk awareness
Consistency (SIPs/discipline)
Smart diversification
Realistic expectations
Adequate insurance
Stick to these, and you’ll navigate the noise while creating long-term wealth.
Markets in 2025 are testing my patience like never before. From September 2024, Nifty dropped 13% and mid-/small-caps slid nearly 20%. Though it has rebounded, I am not sure how to rejig my portfolio. Gold has crossed Rs 1,00,000 and select stocks like BEL and MRF hit lifetime highs. Other investors are confused too — should we chase momentum, stick with SIPs, or rebalance into safer assets?
Advice by Arun Chaudhary, Director & Chief Business Officer, m.Stock by Mirae Asset Capital Markets
2025 has indeed been challenging. Portfolios feel stagnant, SIPs appear slow, and volatility is making investors second-guess every decision. Between September 2024 and January 2025, the Nifty 50 fell nearly 13%, while mid- and small-caps dropped 18–20%. In contrast, stocks such as Aarti Industries, BEL, and MRF touched lifetime highs, and gold surged past Rs 1 lakh with over 18% returns in just 12 months. Then came a sharp rebound—Bank Nifty hit new highs and Nifty recovered to 25,000.
This seesaw makes it tough to decide: Should you have bought more gold, continued SIPs, or waited for the next entry point? Let’s break it down into actionable steps.
1. Start with Risk, Not Returns
The most common mistake is chasing returns without assessing personal risk.
A single-income earner, someone supporting parents, or a homemaker with a fixed nest egg will all have different risk appetites.
Rules like “100 minus your age” are only rough indicators—life stage, job security, and liabilities matter more.
Investing aggressively without a plan often leads to panic exits or desperate moves like F&O trading. That’s speculation, not strategy.
2. Being Consistent Works Better Than Timing
Timing the market is rare. Consistency works.
Investors who continued SIPs during the Sep ’24 – Mar ’25 dip reduced their average cost by 8–12%. Many SIPs are already showing 13–15% returns because of the rebound.
Example: A ₹10,000 monthly SIP from Jan 2013 to Jan 2025 in a Nifty index fund grew to ₹31–33 lakhs, against ₹14.4 lakhs invested.
That’s the quiet power of time and compounding.
3. Diversify with Intent, Not Illusion
Owning 20 mutual funds is not diversification. True diversification spreads across uncorrelated assets.
Past 3 years CAGR: Gold ~13.4%, Nifty 50 ~11.8%, Debt ~6.5%.
A simple 30% equity, 30% gold, 30% debt, 10% liquid split would turn ₹1 lakh into ~₹1.52 lakh.
A smarter allocation—40% equity (large & flexi-cap), 25% gold, 25% debt (corporate/dynamic bonds), 10% liquid—yields ~₹1.60–1.62 lakh with lower shocks.
It’s not about spreading thin. It’s about spreading smart.
4. Ignore the Noise, Focus on Process
Every headline doesn’t deserve a reaction.
June 2025 elections: 8% intraday crash followed by 11% recovery in 4 days.
Oct 2024 border tensions: 6% dip, recovery in 2 weeks.
Mar 2020: A 30% collapse, fully reversed in 9 months.
Markets fall and recover. Emotional reactions usually lead to missed gains.
5. Be Realistic About Returns
Many expect to double money quickly, but real equity returns average 12–15% annually.
₹10 lakhs at 15% CAGR → ₹20L in 5 yrs, ₹40L in 10 yrs, ₹80L in 15 yrs.
A ₹10,000 SIP for 15 years → ~₹63 lakhs from ₹18 lakhs invested.
Patience, discipline, and consistency matter more than chasing quick wins.
6. Seasonal Plays Can Add Value
PSU banks, defence, and infrastructure outperformed in the last 18 months. Riding such themes can add returns—but only if tracked, analysed, and exited on time.
Disclaimer: If you cannot actively manage sectors, stick to diversified mutual funds. Blindly chasing momentum is riskier than doing nothing.
7. Insurance is an Investment Too
With medical inflation at 14%, one hospitalisation can wipe out years of returns. Insurance should not be seen as a tax-saving tool—it’s a core part of your financial plan, just like equity, debt, and gold.
Final Word
Yes, 2025 is testing investor patience. But volatility isn’t new—it comes and goes. What matters is whether your portfolio is anchored in:
Risk awareness
Consistency (SIPs/discipline)
Smart diversification
Realistic expectations
Adequate insurance
Stick to these, and you’ll navigate the noise while creating long-term wealth.