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1. How long are you planning to stay invested before you need to use your funds?

A. I have never invested in capital markets before.
B. I understand the basic concepts of investing like the risks involved and need for diversification.
C. I have some investments that I handle on my own. I understand the impact of market fluctuations on my investments and understand the concepts behind equity, mutual funds, gold bonds, etc.
D. I have been investing for a few years now in different markets and am aware of the risks and benefits. I do my own research when I invest.

A. I will not hold, instead sell immediately if I notice an erosion of my capital.
B. I’d hold for 3 months and watch my investment closely.
C. I’d hold for 6 months and sell if markets don’t show signs of improvement.
D. I’d hold for one year and study the industry to understand what is happening.
E. I’d hold a poorly performing investment for upto two years.
F. I’d hold for more than two years.

A. Cut losses immediately and liquidate all investments. Preservation of capital is most important.
B. Cut your losses and transfer investments to safer options.
C. Drop in value is worrying, but you prefer to wait and watch for a while.
D. You are aware that markets will fluctuate and drops in portfolio value is part of investing. You will keep a watch on your investments and continue to stay invested.
E. Use the drop in market value to purchase more stocks and funds, to lower your average buying price. You have a clear investment strategy and do not react to market swings.