It is now clear that a macro risk (Russia/Ukraine) has become a known event.  Not surprisingly the markets are selling off as new information is factored into prices. 

No one knows how this will end or its short term implications.  If anyone tells you they do, it tells you more about them than their forecasting abilities.

What we need during a crisis is

a)  Conviction in India’s long term story and that stock prices are slaves to medium term earnings.   Understanding of history: military conflicts involving super-powers cannot be indefinite as stakes are too high. 

c) Cash: ability to take advantage of falling prices

d) Courage: tolerance for deep draw downs and ability to withstand them

Our recommendation is to “drip feed” your accounts regularly.  But invest being fully aware that prices can decline much further than you may imagine in the short term, and that these will always look at incredible buying opportunities in hindsight.  And that draw downs should not matter if you have a 5 year perspective and don’t need the money in the interim.