We all know that the basic principle of maximizing returns is to BUY Low and Sell High. However, the Indian Investor in general has always failed to Invest when the markets are cheap. On the contrary, they invest in Gold when it is cheap and consider it as a long term investment but are scared to invest in equities or maybe they have short term perceptions. [We have all seen in Reliance Power IPO]
Sr. Fund Manager, Mr. Prashant Jain of HDFC Mutual Fund has written an excellent note to his investors saying,
Best returns are typically on investments made in bad times.
You can read the entire document written by Prashant Jain here. [PDF]