{"id":47768,"date":"2025-12-01T04:08:42","date_gmt":"2025-12-01T04:08:42","guid":{"rendered":"https:\/\/sochtimes.com\/2025\/12\/01\/ask-dhirendra-i-want-to-invest-but-im-scared-of-losing-money-how-do-i-start-when-im-afraid\/"},"modified":"2025-12-01T04:08:42","modified_gmt":"2025-12-01T04:08:42","slug":"ask-dhirendra-i-want-to-invest-but-im-scared-of-losing-money-how-do-i-start-when-im-afraid","status":"publish","type":"post","link":"https:\/\/sochtimes.com\/hi\/2025\/12\/01\/ask-dhirendra-i-want-to-invest-but-im-scared-of-losing-money-how-do-i-start-when-im-afraid\/","title":{"rendered":"Ask Dhirendra: I want to invest, but I\u2019m scared of losing money. How do I start when I\u2019m afraid?"},"content":{"rendered":"


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\"Ask<\/div>\n<\/div>\n<\/div>\n
If you wait for a day when you feel zero fear, you may never start. (AI image)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

If you\u2019ve ever opened an investing app, seen a zig-zag line, felt your stomach drop and quietly closed it\u2014congratulations, you are perfectly normal.You work hard for your money. You\u2019ve heard horror stories about stock market losses, \u201cthis fund went down 20%,\u201d and uncles who \u201clost everything\u201d in some scheme. Then someone like me says, \u201cJust start an SIP and think long term.\u201dYour brain reasonably replies: \u201cVery nice. But what if I lose money?\u201dLet\u2019s separate feeling from fact.What are you actually afraid of?<\/span>When people say \u201cI\u2019m scared of the market,\u201d it\u2019s usually a mix of:<\/p>\n

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  • I don\u2019t understand this.
    Jargon, charts, acronyms. When we don\u2019t understand something, we assume danger.<\/li>\n
  • I can\u2019t afford a big loss.
    The fear that one wrong step will wipe out years of saving.<\/li>\n
  • I don\u2019t trust the system.<\/li>\n<\/ul>\n<\/div>\n

    Scams, defaults, frauds\u2014headline writers don\u2019t go hungry.All fair worries. But the numbers tell a calmer story.What the data quietly says<\/span>Day-to-day, the market looks like a heart monitor. Over longer periods, it looks much more boring.<\/p>\n

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    \"Zoom<\/p>\n

    Zoom out, breathe easier<\/p>\n<\/div>\n<\/div>\n

    The translation in plain English:<\/p>\n

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    • In the short term, ups and downs are routine.<\/li>\n
    • Over 10\u201315 years, a diversified equity investment has usually rewarded patience.<\/li>\n<\/ul>\n<\/div>\n

      There are no guarantees, but the risk of temporary loss is far higher than the risk of permanent loss\u2014provided you behave sensibly.And then there is the villain we don\u2019t see: inflation.The risk of doing \u201cnothing\u201d<\/span>Keeping all your money in savings and FDs feels safe. But \u201csafe\u201d here means \u201cslowly losing purchasing power\u201d.Not investing is also a decision about risk. Just not the one you think.<\/p>\n

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      \"Playing<\/p>\n

      Playing it too safe isn’t safe at all<\/p>\n<\/div>\n<\/div>\n

      Meet Rajesh, the nervous first-timer<\/span>Take a typical 32-year-old salaried worker in Delhi. Call him Rajesh.<\/p>\n

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      • Some money in the bank, a couple of FDs.<\/li>\n
      • Parents once bought a terrible product and lost money.<\/li>\n
      • Rajesh has been \u201cabout to start an SIP\u201d for three years, but every time he reads \u201cmarkets at all-time high\u201d or \u201ccrash coming\u201d, he postpones it.<\/li>\n<\/ul>\n<\/div>\n
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        \"The<\/p>\n

        The safest path isn’t always the straightest<\/p>\n<\/div>\n<\/div>\n

        Even with a couple of bad years, the investing Rajesh ends up with a far larger corpus. The non-investing Rajesh feels safe but quietly loses opportunity.His fear of seeing temporary ups and downs is pushing him towards a permanent gap.First fix: protect yourself<\/span>If you\u2019re genuinely scared of losing money, your first job is not to pick a mutual fund. It\u2019s to make sure that one bad event doesn\u2019t force you to sell at the worst time.Two simple steps:<\/p>\n

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        1. Emergency fund\n
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          • Keep 3\u20136 months of expenses in a boring, easy-access place.<\/li>\n
          • This is not for returns; it\u2019s your \u201cI can sleep at night\u201d fund.<\/li>\n<\/ul>\n<\/li>\n
          • Basic insurance\n
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            • Health insurance for hospital bills.<\/li>\n
            • Term life insurance if others depend on your income.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n

              Once these are in place, the fear that \u201cone illness \/ job loss will wipe me out\u201d reduces sharply. You\u2019re less likely to raid your investments in a panic.Second fix: start small and boring<\/span>Your first investment should not try to impress you. It should try to survive you.<\/p>\n

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              • Start with an amount you can ignore emotionally. Even \u20b92,000\u2013\u20b93,000 a month is fine.<\/li>\n
              • Use a simple, diversified fund\u2014preferably a balanced \/ conservative hybrid if you\u2019re very nervous, not a small-cap rocket.<\/li>\n<\/ul>\n<\/div>\n

                During this period, do not stare at the NAV every day. Check once a quarter. Notice how you feel, but don\u2019t act on every mood swing.The first 1\u20132 years are less about returns and more about training your nerves.Then let habit do the heavy lifting<\/span>If you manage to:<\/p>\n

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                • Keep your emergency fund intact,<\/li>\n
                • Pay your SIP on time, and<\/li>\n
                • Not redeem every time there is a noisy headline, you\u2019ve already done the hard part.<\/li>\n<\/ul>\n<\/div>\n

                  From there, the upgrades are easy:<\/p>\n

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                  • Increase your SIP as your income rises.<\/li>\n
                  • Gradually tilt more towards equity if your goals are 10\u201315 years away.<\/li>\n<\/ul>\n<\/div>\n

                    Good investing is mostly this: boring, repeated, automated good behaviour.You don\u2019t need courage. You need a plan.<\/span>You don\u2019t have to become a thrill-seeker to start investing. You don\u2019t have to predict markets. You don\u2019t have to enjoy risk.You just need to:<\/p>\n

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                    1. Protect yourself from big shocks.<\/li>\n
                    2. Start with an amount and a product you can live with.<\/li>\n
                    3. Give time and compounding a chance to work.<\/li>\n<\/ol>\n<\/div>\n

                      Your fear is valid. Respect it. But don\u2019t let it run the show.If you wait for a day when you feel zero fear, you may never start. If you start with a sensible plan despite the fear, that small, boring SIP might quietly turn into the bravest financial decision of your life.(Dhirendra Kumar is Founder and CEO of Value Research)<\/span><\/div>\n