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Why Timing the Market Failed Ravi, But Time in the Market Made Him Wealthy

Why Timing the Market Failed Ravi, But Time in the Market Made Him Wealthy

The Story of Two Investors: Ravi vs. Arjun

Ravi and Arjun were college friends who started investing in stocks at the same time. Both had good jobs, decent salaries, and a keen interest in the stock market.

But their investing strategies were completely different.

Ravi believed in timing the market. He spent hours analyzing charts, watching financial news, and waiting for the “perfect time” to buy stocks.
Arjun believed in time in the market. He simply invested regularly in quality stocks and let time do the work.

Ravi’s Struggle: The “Perfect Time” Never Came

Ravi was always looking for market corrections before investing.

  • In 2015, when the market was rising, he thought, “It’s too high; I’ll wait for a crash.”
  • In 2017, the market corrected, but he panicked and thought, “What if it falls more?”
  • In 2020, the market crashed due to COVID-19, and he feared, “This time, the market might never recover!”

He kept waiting for the right moment but never invested consistently.

Arjun’s Strategy: Investing Regularly Without Fear

Arjun, on the other hand, didn’t worry about short-term market movements. He started a Systematic Investment Plan (SIP) in stocks and mutual funds, investing a fixed amount every month.

  • If the market was high, he bought fewer units.
  • If the market was low, he bought more units.
  • He never stopped investing, no matter what.

The Result After 10 Years

By 2025, the stock market had gone through many ups and downs. But Arjun’s portfolio had grown significantly, while Ravi was still waiting for the “perfect time.”

  • Ravi’s total investments: ₹5 lakh (but mostly in cash, waiting to invest)
  • Arjun’s total investments: ₹5 lakh (fully invested in stocks and mutual funds)
  • Arjun’s portfolio value: ₹15 lakh (due to compounding and long-term growth)
  • Ravi’s portfolio value: ₹5.5 lakh (because he barely invested)

Arjun had tripled his money, while Ravi barely made any returns.

The Lesson: Stop Timing, Start Investing

  • The market will always have ups and downs, but long-term investors benefit the most.
  • Investing regularly reduces risk and ensures wealth creation over time.
  • Compounding works best when money stays invested, not when it waits for the ‘right time.’ .

Are You Waiting or Investing?

At DHM Finserv, we help investors follow a disciplined approach to long-term wealth creation. Don’t wait for the perfect time—start investing today!

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DHM Finserv is a brand name used for financial distribution and related services. All products and services including Mutual Funds, Insurance, Equities, AIFs, PMS, NPS, and Fixed Deposits are offered through the individual licenses and registrations of Mr. Harshit Zaveri and others, who is duly registered with relevant regulatory authorities such as AMFI (ARN-317068), IRDAI (11618388), Aakash Jajoo SEBI Code (INH000015312), and Harshit Zaveri AP Code : NSE Cash Segment: AP1675072841, NSE F&O Segment: AP1675072841, BSE Cash Segment: AP01027501170395, UTIPFL NPS Distributor Code – UTIPFLPA1906 (Harshit Zaveri). Tata AIA Insurance – Agency Code 9514174 (Harshit Zaveri).

DHM Finserv is not a SEBI/IRDAI/PFRDA registered entity. Investors are advised to read all scheme-related documents and disclosures carefully before investing. Mutual Fund investments are subject to market risks. Insurance is subject to terms and conditions of the insurer. No guaranteed returns are promised under any product.

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