Why "time in the market" beats timing it

Study after study shows the average equity investor underperforms the very funds they invest in — the gap is almost entirely behavioral, driven by mistimed entries and exits around volatility.

Loss aversion drives bad timing

Investors feel losses roughly twice as intensely as equivalent gains, which pushes many to sell during drawdowns — locking in losses right before the eventual recovery.

Recency bias inflates recent performance

A strong recent run tends to attract fresh capital right as valuations become stretched, while genuinely attractive entry points after a correction are avoided out of fear.

What actually works

• A written investment policy / asset allocation plan, agreed upon before volatility hits
• Automating contributions (SIPs) to remove the timing decision entirely
• Rebalancing on a schedule, not on emotion